Document:

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                                                                    EXHIBIT 10.4

                          FORM OF DEALERSHIP AGREEMENT

                                BMW (GB) Limited

                                     - and -

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THIS AGREEMENT is made BETWEEN BMW (GB) LIMITED whose registered office is at
Ellesfield Avenue Bracknell Berkshire RG12 8TA (hereinafter called "BMW GB") and
the Dealer specified in the Eighth Schedule hereto (hereinafter called "the
Dealer").

Preamble

BMW GB and the Dealer enter into this Agreement with the desire and the
expectation that the business endeavours of the Dealer and the dealer
organisation as a whole and the activities of BMW GB will result in the greatest
success possible.

BMW GB and the Dealer will endeavour through their co-operation in the
distribution and maintenance of Contract Goods to satisfy in every way the
expectations of Customers.

1.   BASIS OF THE AGREEMENT

1.1  Distribution Rights for Contract Goods

          BMW GB hereby appoints the Dealer to be and the Dealer undertakes the
          duty of being a dealer in Contract Goods in the Territory as
          hereinafter defined on the terms and conditions hereinafter appearing
          from the Commencement Date specified in the Eighth Schedule hereto.

1.2  BMW Support

          BMW GB intends that the Dealer will receive all relevant services to
          enable the Dealer to offer to its Customers, as it sees fit, the
          Customer Facilities as defined in Clause 14 hereof, but this Agreement
          does not itself apply to such Customer Facilities.

1.3  Modification of the Contract Goods

          (a)  The Dealer will not, without the prior written consent of BMW GB,
               modify the Contract Goods using other than BMW Parts or offer for
               sale or distribute such modified goods unless such modification
               is the subject of a contract with a final consumer and concerns a
               particular BMW Vehicle purchased by such final consumer.

          b)   The Dealer will use only the model designations applied by the
               Manufacturer from time to time.

1.4  Re-Sale of Contract Goods

          The Dealer will not supply Contract Goods to any reseller not
          authorised by BMW GB or directly or indirectly by the Manufacturer.
          This restriction does not apply to the extent that any such reseller
          purchases any BMW Parts for his own use in effecting repairs or
          maintenance.

          The term "reseller" includes any third party or intermediary not
          authorised as aforesaid who represents himself as an authorised
          reseller of BMW Vehicles or carries on an activity equivalent to that
          of a reseller.

          Sales of BMW Vehicles to final consumers using the services of any
          other intermediary are permitted only if that intermediary has the
          prior written authority of such final consumer to purchase a specific
          BMW Vehicle and, as the case may be, to accept delivery thereof on the
          final consumer's behalf.

          The Dealer must before completing the sale of any BMW Vehicle intended
          for use in the United Kingdom ensure that such BMW Vehicle is
          registered with the appropriate registration authority.

          In the event of any breach by the Dealer of this Clause 1.4, then,
          without prejudice to all other remedies which may be available to BMW
          GB, the Dealer may be required by BMW GB to pay the full recommended
          retail price for the Contract Goods in respect of which the breach
          occurs, and BMW GB may debit the account of the Dealer in accordance
          with the direct debit procedure operated by BMW GB with an amount
          equivalent to the aggregate of the difference between the recommended
          retail price and the wholesale price otherwise payable by the Dealer,
          together with any taxes thereon, and the amount of any bonus, discount
          or rebate received by the Dealer which would not have been given to
          the Dealer but for any sale or supply in breach of this clause 1.4.

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1.5  Independence of Dealer

          The Dealer operates its business in its own name, on its own account
          and at its own risk. It has no power to legally bind BMW GB or the
          Manufacturer and it is understood and agreed between the parties
          hereto that this Agreement shall not be construed as constituting the
          Dealer as agent of BMW GB or the Manufacturer for any purpose
          whatsoever. The Dealer will not describe itself as agent for BMW GB or
          the Manufacturer or in any words indicating any relationship of agency
          existing between the parties.

1.6  Assignment

          The Dealer will not without BMW GB's prior written consent assign or
          purport to assign the benefit of this Agreement either in whole or
          part to any third party.

          In deciding whether or not to grant such consent BMW GB will take into
          account all those matters which it would normally take into account
          when deciding whether or not to appoint a new dealer.

2.   THE TERRITORY

2.1  Description of the Territory

          The Territory is the area described in the Seventh Schedule hereto.

2.2  Responsibility in the Territory

          The Dealer represents the interests of BMW GB in the Territory. It is
          responsible for the sales promotion and full utilisation of the market
          potential for Contract Goods in the Territory.

          It is further responsible for ensuring the provision of the best
          possible customer service.

          The appointment of additional dealers in the Territory or any change
          of the Territory during the term of this Agreement require prior
          consent of the Dealer. This applies without prejudice to the right of
          BMW GB to appoint an additional dealer or to establish branches or
          distribution depots in the Territory if the Territory is served by
          more than one BMW Dealer and any such BMW Dealer ceases to be a BMW
          Dealer.

2.3  Activity Outside the Territory

          The Dealer will not outside the Territory with respect to Contract
          Goods:

          a)   maintain branches or delivery depots; or

          b)   entrust a third party with the distribution or servicing of
               Contract Goods; or

          c)   solicit new Customers by personalised advertising.

2.4  Export

          The Dealer will not supply any Contract Goods, directly or indirectly,
          to any purchaser outside the territory of the European Economic Area
          (EEA) nor will the Dealer modify any Contract Goods for the purpose of
          such supply.

          In the event of any breach by the Dealer of this Clause 2.4, then,
          without prejudice to all other remedies which may be available to BMW
          GB, the Dealer may be required by BMW GB to pay the full recommended
          retail price for the Contract Goods in respect of which the breach
          occurs and, accordingly, BMW GB may debit the account of the Dealer in
          accordance with the direct debit procedure operated by BMW GB with an
          amount equivalent to the aggregate of the difference between the
          recommended retail price and the wholesale price otherwise payable by
          the Dealer, together with any taxes thereon, and the amount of any
          bonus, discount or rebate received by the Dealer which would not have
          been given to the Dealer but for any supply in breach of this clause
          2.4.

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3.   ACTIVITY WITH RESPECT TO OTHER MOTOR VEHICLE PRODUCTS

3.1  Manufacture and Distribution of Third Party Products

          The Dealer will not without the prior written consent of BMW GB
          manufacture, sell, distribute, supply, or promote the distribution of
          any product which competes with Contract Goods or use such products in
          the repair or maintenance of any Contract Goods. The obligation
          contained in this Clause 3.1 applies to the following:

          a)   new cars of other makes, EXCEPT on separate sales premises, under
               separate management, in the form of a distinct legal entity and
               in a manner which avoids confusion between makes

          b)   sale and use of Non-BMW Parts which do not meet the same quality
               standard as BMW Parts

          If the Dealer uses Non-BMW Parts for the repair or maintenance of BMW
          Vehicles the Dealer undertakes to inform Customers, in a general
          manner, of the extent to which such Non-BMW Parts might be so used.

          The Dealer further undertakes to inform Customers in writing whenever
          Non-BMW Parts have been used for the repair or maintenance of BMW
          Vehicles.

          The Dealer will use only BMW Parts in carrying out any warranty or
          goodwill work or any work in connection with a product recall or
          modification campaign concerning Contract Goods.

3.2  Reasons for Release from Obligations

          BMW GB will release the Dealer from the obligations referred to in
          clause 3.1 a) where the Dealer shows that there are objective reasons
          for doing so.

4.   SCOPE OF THE ACTIVITY OF THE DEALER

4.1  Objectives

     4.1.1 Strengthening of the BMW GB Dealer Organisation

          The Dealer will continually endeavour to strengthen the BMW dealer
          organisation in its entirety.

     4.1.2 Responsibility for Sales and Advertising

          In assuming responsibility for the promotion of sales and the full
          utilisation of the market potential for Contract Goods the Dealer will
          use its best endeavours to conduct effective sales promotion and
          advertising making use of the most appropriate advertising media.

     4.1.3 Requirements of BMW GB

          In order to comply with its duties the Dealer will ensure that its
          business operations and representation conform with the reasonable
          requirements of BMW GB in respect of sales, customer and parts
          service, as they are, for example, set forth in the Schedules to this
          Agreement or as otherwise notified from time to time by BMW GB.

4.2  Sale of BMW Vehicles

     4.2.1 Delivery Forecast

          Prior to the beginning of each sales year, which shall be the calendar
          year unless otherwise notified by BMW GB, BMW GB shall propose to the
          Dealer a delivery forecast.

          The delivery forecast shall be based on the production potential of
          the Manufacturer and shall take into account, in particular;

          a)   forecast sales defined by BMW GB on a national level; and

          b)   the market potential resulting from BMW GB's estimate of future
               sales in the Territory and nationally.

     4.2.2 Sales Targets

          The Dealer and BMW GB will annually agree sales targets in respect of
          BMW Vehicles and may also agree other specific targets in respect of
          BMW Vehicles from time to time. As well as the criteria referred to in
          clause 4.2.1 the following aspects shall in particular be taken into
          account:

          a)   Sales previously achieved in the Territory; and

          b)   The business development possibilities of the Dealer.

     4.2.3 Maintenance of Stocks and Demonstration Vehicles

          The Dealer undertakes to maintain an inventory of BMW Vehicles for
          display, demonstration and sale in each model series which is in line
          with the projected sales targets referred to in clause 4.2.2 and which
          is in accordance with the provisions of the Schedules hereto.

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          The Dealer will effect comprehensive insurance with an insurance
          company or underwriter of repute for any vehicle loaned to it by BMW
          GB for any purpose to the current retail price of the vehicle or any
          other value specified by BMW GB and upon request produce to BMW GB
          satisfactory evidence of such insurance.

4.3  Dealer's Parts Responsibilities

     4.3.1 The Dealer and BMW GB will annually agree sales targets in respect of
          BMW Parts and may also agree other specific targets in respect of BMW
          Parts from time to time. There shall be taken into account similar
          considerations to those applying to targets for BMW Vehicles referred
          to in sub-Clauses 4.2.1 and 4.2.2 hereof.

     4.3.2 Supply of Parts

          The Dealer will offer actual and potential Customers a supply of BMW
          Parts which corresponds to such Customers' expectations.

     4.3.3 Maintenance of Stocks

          The Dealer will maintain stocks of BMW Parts which are adequate in
          view of the business, market responsibility and servicing duties of
          the Dealer as well as the actual needs of Customers, in accordance
          with BMW GB's requirements set forth in Section B of the Third
          Schedule hereto, the parts information material published from time to
          time by BMW GB, and as otherwise notified by BMW GB from time to time.

     4.3.4 Storage Space and Outfitting Thereof

          The Dealer will continuously maintain storage space appropriately
          equipped for the storage of BMW Parts, to the standards set forth in
          Section B of the Third Schedule hereto and as otherwise notified by
          BMW GB from time to time.

          To the extent the Dealer offers or uses Non-BMW Parts covered by
          clause 3.1 of this Agreement it will identify these parts separately
          from BMW Parts.

4.4  Dealer's Service Responsibilities

     4.4.1 Servicing of Customers' Vehicles

          The Dealer will provide service for all BMW Vehicles pursuant to the
          provisions of the Fifth Schedule hereto, the conditions for warranty
          and goodwill and the service information material or other
          requirements published by or circulated from time to time by BMW GB
          and/or the Manufacturer.

     4.4.2 Scope of Customer Services

          The Dealer will:

          a)   accept BMW Vehicles from the transport company used for the
               purpose by BMW GB, store them and deliver them to the Customers;

          b)   inspect repair and maintain BMW Vehicles in accordance with any
               instructions of BMW GB and/or the Manufacturer in force from time
               to time;

          c)   on the instructions of BMW GB participate in product recall or
               modification campaigns in which the Dealer will examine and
               modify if necessary all Contract Goods concerned;

          d)   handle warranty and goodwill claims for any Customer provided the
               relevant Contract Goods were delivered by a supplier within the
               territory of the European Economic Area authorised directly or
               indirectly by the Manufacturer.

     4.4.3 Service Facilities

          The Dealer will maintain service facilities which enable it to render
          services in accordance with the requirements of Customers and BMW GB.
          For this purpose the Dealer is required to equip its facility with the
          BMW-prescribed special tools, measuring and test instruments and
          equipment and to conform with the provisions as to Service
          Requirements set forth in the Fifth Schedule hereto and as otherwise
          notified by BMW GB from time to time.

     4.4.4 Service for Third Party Products

          In so far as the Dealer provides service in respect of third party
          products, the Dealer will ensure that a third party cannot benefit
          unduly from investments made by BMW GB and/or the Manufacturer,
          notably in equipment or the training of personnel.

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5.   DIRECT SALES THROUGH BMW GB

5.1  Sales Reservation

     BMW GB may supply Contract Goods directly or indirectly to:

          a)   final consumers, to the extent this occurs through branches or
               distribution subsidiaries,

          b)   fleet users,

          c)   public or local authorities or similar national or international
               organisations,

          d)   foreign public organisations,

          e)   racing drivers and teams recognised by BMW GB or by the
               Manufacturer or any of their Connected Undertakings,

          f)   its employees and their families and those of any Connected
               Undertaking of BMW GB,

          g)   its suppliers or employees thereof, celebrities and media
               representatives where it feels there are special reasons for so
               doing,

          h)   vehicle and original equipment manufacturers, and

          i)   Connected Undertakings of BMW GB.

6.   SUPPLIES AND SALES TO THE DEALER

6.1  Obligations to Deliver and Purchase

     BMW Vehicles will be supplied on consignment to the Dealer by BMW GB upon
     the terms and conditions set out in the First Schedule hereto.

     BMW Vehicles will be sold to the Dealer by BMW GB on the terms and
     conditions set out in the Second Schedule hereto.

     BMW Parts will be sold to the Dealer by BMW GB on the terms and conditions
     set out in the Third Schedule hereto.

6.2  Ordering of Contract Goods

     The Dealer will order Contract Goods according to the BMW GB ordering
     system or such amended procedures as are from time to time notified by BMW
     GB.

6.3  Assumption of Warranty

     a)   BMW GB grants to the Dealer a warranty for Contract Goods according to
          the terms of sale and delivery for BMW Vehicles and Parts as specified
          in the Second and Third Schedules hereto.

     b)   When reselling or supplying Contract Goods to a Customer the Dealer
          will grant to the Customer a warranty which at least corresponds to
          the scope of the warranty granted by BMW GB to the Dealer.

     c)   Warranty claims will be handled and settled in accordance in to the
          Fourth Schedule hereto.

6.4  Liability for Orders

     BMW GB will not be liable for its failure to deliver any orders of the
     Dealer:

     a)   For reasons of Force Majeure as defined in Clause 13.4 of this
          Agreement;
          or

     b)   If the Manufacturer's production series of any Contract Goods ordered
          has been discontinued.

7.   BUSINESS OPERATIONS

7.1  Business Premises and Equipment Thereof

     7.1.1 General Requirements

          The Dealer will maintain business premises which are appropriate in
          terms of size, equipment, facilities, location, internal and external
          appearance (i.e. corporate identity), and in all technical and
          business aspects in such a way as to meet reasonable expectations of
          actual and potential Customers of the BMW brand as well as the
          requirements of BMW GB necessary to fulfil the purpose of this
          Agreement.

     7.1.2 Business Premises and Offices

          The Dealer's business premises, offices and other installations and
          their technical equipment must meet reasonable Customer expectations
          with respect to sales and service of Contract Goods. They must conform
          to the standards and provisions set forth in the Fifth and Sixth
          Schedules hereto and as otherwise notified by BMW GB from time to time
          and must also correspond to the particular business situation of the
          dealership including such considerations as volume of sales, service
          and parts business.

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          The Dealer's obligations hereunder apply in particular, but without
          limitation, to:

          a)   showrooms and space for new cars;

          b)   presentation and sales facilities for the parts business; and

          c)   capacity and equipment of customer service facilities

     7.1.3 Business Expansion - Investment

          The Dealer will expand its business and facilities in line with the
          expansion of business volume, save that, the Dealer will obtain the
          prior written consent of BMW GB if the operations of the Dealer may be
          directly or indirectly affected by any substantial work of
          construction and alterations or other large investment or other major
          commitment which the Dealer intends to carry out or undertake.

7.2  Personnel Requirements

     7.2.1 Key Personnel

          BMW GB enters into this Agreement in reliance upon the fact that the
          Key Personnel specified in the Eighth Schedule will ensure that the
          obligations of the Dealer under this Agreement are properly fulfilled.

     7.2.2 Changes in Key Personnel

          The Dealer will not appoint any person in substitution for or in
          addition to the Key Personnel specified in the Eighth Schedule or
          change any of the functions carried out by the said Key Personnel or
          any of them without the prior written consent of BMW GB. This consent
          may be withheld only if BMW GB consider that the change or its effect
          might impair the performance of this Agreement or other important
          interests of BMW GB.

     7.2.3 Sales and Technical Personnel and Training

          The Dealer will employ in all aspects of its business covered by this
          Agreement sufficiently trained business and technical personnel and
          ensure their ongoing and further training. The Dealer will make use of
          the training facilities and systems offered by BMW GB and, in
          co-operation with BMW GB, enable and encourage the regular attendance
          by its personnel at the appropriate training courses.

7.3  Financing and Equity

     7.3.1 Financial Situation - Equity Holdings

          The financial base of the Dealer's business and the equity holdings
          must correspond to the requirements generally and reasonably approved
          by BMW GB for BMW Dealers for a proper and economically sound
          management of the Dealer's business. BMW GB may verify through
          inspection of the Dealer's relevant business records, and those of any
          Connected Undertaking of the Dealer relevant to the Dealer's business.
          the amount of the share capital, equity holdings and any shareholder

          agreements on profit and loss distribution and, if necessary, require
          measures to be initiated which ensure compliance with this clause.

     7.3.2 Changes in the Ownership and Equity Holdings

          No change in the ownership of, or the composition of shareholdings in,
          the Dealer or any material change in the constitution of the Dealer
          shall be made without the prior written consent of BMW GB.

          This consent may be withheld only if BMW GB consider that the change
          or its effect might impair the performance of this Agreement or other
          important interests of BMW GB.

7.4  Organisational Requirements

     7.4.1 Data Processing - Exchange of information

          In order to ensure the most rational operational procedure possible
          the Dealer will use data processing in all areas of its business to
          the extent economically feasible. The Dealer will create the
          organisational and technical basis necessary to ensure the optimum
          development of its business and the reciprocal flow of data between it
          and BMW GB.

          The Dealer will ensure that its data processing system is compatible
          with that of BMW GB.

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     7.4.2 Accounting

          In the interest of uniformity of the accounting system within the BMW
          GB dealer network the Dealer will operate an accounting system
          compatible with the requirements of BMW GB and will send to BMW GB, at
          the request of BMW GB, an operating report in such form as may be
          specified from time to time by BMW GB to cover the Dealer's
          operations.

8.   ADVERTISING AND TRADEMARKS

8.1  Advertising

     The Dealer will advertise Contract Goods in accordance with recommendations
     made from time to time by BMW GB. The Dealer will give preference to the
     advertising materials recommended by BMW GB.

     The Dealer will not use any advertisement which is inconsistent with the
     public image or corporate identity of BMW GB or the Manufacturer or which
     may in any respect bring the Dealer, BMW GB or the Manufacturer into
     disrepute.

8.2  Business Name

     8.2.1 The Dealer will represent itself to third parties as an officially
          authorised BMW Dealer.

     8.2.2 The Dealer will not use the names Bayerische Motoren Werke or any
          translation or any derivation or abbreviation thereof in its own name
          or address nor will the Dealer without the prior written consent of
          BMW GB change its name.

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8.3  Exhibitions and Fairs

     8.3.1 The Dealer will give BMW GB reasonable notice when it intends to
          participate in an exhibition or trade fair. BMW GB may prohibit the
          Dealer from participating in exhibitions and fairs in relation to the
          Contract Goods when the reputation of BMW GB or the Manufacturer may
          be jeopardised.

     8.3.2 When participating in any exhibitions or fairs in relation to the
          Contract Goods, the Dealer will comply with the requirements of BMW GB
          in respect of any use of the Manufacturer's trademarks.

8.4  Use of Trademarks generally

     8.4.1 The Dealer will use in its business the Manufacturer's trademarks as
          notified by BMW GB to the Dealer in such manner as is specified by BMW
          GB from time to time and without making any additions or change to
          them.

     8.4.2 The Manufacturer's trademarks may not be used for or in connection
          with goods other than Contract Goods.

     8.4.3 Unless specifically authorised by BMW GB in writing, the Dealer has
          no right to license any third party to use any of the Manufacturer's
          trademarks.

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8.5  Trademark Infringement

     8.5.1 The Dealer will immediately inform BMW GB of any infringement of the
          Manufacturer's trademarks by third parties. BMW GB will take
          appropriate action against such trademark infringement and the Dealer
          will support BMW GB in such action or prevention of infringement.

     8.5.2 The Dealer shall not, without the prior written consent of BMW GB,
          permit any of the Manufacturer's trademarks to be used to endorse or
          promote any third party products or services.

8.6  Corporate Identity

     The Dealer will observe in its advertising and its business stationery as
     well as generally in the use of the Manufacturer's trademarks the Corporate
     identity Programme from time to time provided by BMW GB.

9.   SUPPLY OF INFORMATION BY DEALER

9.1  Advice and Information

     BMW GB will at any time and in an appropriate manner advise and counsel the
     Dealer on the basis of data and other information supplied to it by the
     Dealer with regard to business and technical matters. This includes in
     particular, management advice based on BMW GB's experience acquired through
     comparing dealer businesses and balance sheets submitted by BMW Dealers. It
     is therefore necessary that BMW GB and the Dealer mutually inform each
     other on all essential points pursuant to the provisions of the following
     clauses

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     9.2, 9.3 and 9.4 and that the Dealer reports continually and fully to BMW
     GB on its business activity.

     Customer data received by BMW GB from the Dealer will be held by BMW GB
     after as well as during this Agreement and, in the event of the Dealer
     ceasing to be a BMW Dealer, may be shared by BMW GB with other BMW Dealers.

     The Dealer will notify in writing a Director or the Company Secretary of
     BMW GB immediately it becomes aware of any claim or proceedings against it
     or BMW GB or the Manufacturer or another BMW Dealer arising in connection
     with any Contract Goods or otherwise and the Dealer will, where the claim
     or proceedings entail a possible liability of the Dealer for damages in
     respect of which the Dealer may wish to have recourse against BMW GB or the
     Manufacturer, follow BMW GB's instructions.

9.2  Reports on Sales Activity

     The Dealer will report regularly to BMW GB its sales including in
     particular the immediate presentation of new orders and registration
     applications. BMW GB may at any time request reports on the market
     situation, stock in hand and estimated stock requirements of the Dealer
     including estimated customer orders within the scope of the Dealer's
     business.

9.3  Business Data of the Dealer

     The Dealer will if so requested by BMW GB participate regularly in the BMW
     GB comparative dealer study with an integrated accounting plan. The Dealer
     will be informed by BMW GB of the result of the comparative dealer study.

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     The Dealer will submit annually within six months of its financial year end
     for inspection by BMW GB its balance sheet and profit and loss account
     certified by its auditors. In the case of the Dealer having a Connected
     Undertaking, the annual financial statements of the Connected Undertaking
     will be submitted as well as the annual financial statements of the Dealer,
     insofar as BMW GB consider that this is important for the evaluation of the
     Dealer's BMW business.

9.4  Supply of information - Inspection of the Business Records

     In order to review the performance by the Dealer of its obligations under
     this Agreement, BMW GB will be provided by the Dealer with all necessary
     information and documents from time to time requested by BMW GB and the
     Dealer will permit any person authorised by BMW GB to enter any premises of
     the Dealer at any reasonable time for the purpose of obtaining such
     information or inspecting documents including all business and accounting
     records.

10.  CONFIDENTIALITY AND PROTECTION OF DATA

10.1 Confidentiality of the Dealer's Information

     BMW GB will treat all information supplied to it by the Dealer under
     clauses 7.3.1, 7.4.2, 9.3 and 9.4 as confidential between BMW GB the
     Manufacturer and the Dealer, save insofar as such information comes into
     the public domain or into the possession of BMW GB from a source other than
     the Dealer, and save insofar as it is reproduced by BMW GB in the
     comparative dealer study referred to in sub-clause 9.3.

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10.2 Confidentiality of the Manufacturer's and BMW GB's Information

     10.2.1 The Dealer will both during and at any time after the termination of
          this Agreement:

               a)   treat all information supplied to it by BMW GB or the
                    Manufacturer as confidential between the Dealer, BMW GB and
                    the Manufacturer, save insofar as such information comes
                    into the public domain other than as a result of any breach
                    by the Dealer of its obligations hereunder; and

               b)   ensure that any of its employees or agents who come into
                    possession of such information will be informed of and will
                    observe the obligations of this Clause 10.2.

               Without prejudice to the generality of the foregoing, the
               Dealer's obligations under this clause shall apply in particular
               with regard to the know-how provided by the Manufacturer or BMW
               GB for sales and service including any information intended only
               for the internal use of the Dealer.

     10.2.2 The Dealer will not, either during or at any time after the
          termination of this Agreement, make public, use to the detriment or
          prejudice of BMW GB or the Manufacturer, or, except in the proper
          course of the Dealer's duties under this Agreement, divulge to any
          person any information which either expressly or by implication or
          from its context is confidential concerning any aspects of the
          business or affairs of BMW GB or the Manufacturer.

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10.3 Technical Information

     Without prior written consent by BMW GB the Dealer shall not be entitled
     either during or at any time after the termination of this Agreement to
     provide to third parties technical information supplied by BMW GB and/or
     the Manufacturer and/or any of their Connected Undertakings. In the event
     that third parties request the Dealer to provide such information, he shall
     immediately inform BMW GB thereof.

11.  DURATION OF THE AGREEMENT AND TERMINATION

11.1 Duration

     This Agreement contains the whole agreement between the parties and is in
     substitution for and supersedes all previous agreements (if any and whether
     written or oral) between BMW GB and the Dealer relating to Contract Goods.
     It will commence or will be deemed to have commenced on the Commencement
     Date shown in the Eighth Schedule and will continue thereafter unless
     terminated in accordance with me provisions of this Agreement.

11.2 Termination by the Dealer

     The Dealer may terminate this Agreement at any time by giving not less than
     twenty-four months' written notice to expire at the end of any calendar
     month. Any right the Dealer may have to terminate this Agreement for
     fundamental breach is not affected by this clause.

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11.3 Ordinary Notice to Terminate by BMW GB

     BMW GB may terminate this Agreement at any time by giving not less than
     twenty-four months written notice to expire at the end of any calendar
     month.

11.4 Termination for Cause by BMW GB

     BMW GB may terminate this Agreement forthwith and without notice for cause
     where the Dealer fails to perform any of its basic obligations including
     but not limited to:

     a)   The Dealer (including in the case of a firm any partner thereof)
          becoming insolvent by reason of its inability to pay its debts as they
          fall due, or entering into liquidation whether voluntarily or
          compulsorily other than for the purposes of a reconstruction or
          amalgamation, or having a trustee, receiver, administrative receiver
          or similar officer appointed in respect of all or any part of the
          business or assets of the Dealer, or making any arrangement or
          composition with its creditors, or suffering the making of an
          administration order in respect of all or any part of its assets, or
          taking or suffering any similar action in consequence of a debt, or
          ceasing or threatening to cease to trade or, if the Dealer is not
          incorporated, dying.

     b)   Circumstances arising which BMW GB consider impair the
          creditworthiness and/or financial position of the Dealer such that an
          orderly continuation of the business is or may be jeopardised or is no
          longer possible;

     c)   any payments made to BMW GB by the Dealer by any means being
          dishonoured or cancelled otherwise than by reason of a clerical error;

                                      -14-

<PAGE>

     d)   the Dealer becoming unable to control its business or any premises
          thereof wholly or in part as is necessary to enable it to fulfil its
          obligations under this Agreement;

     e)   any material information provided by the Dealer to BMW GB in the
          negotiations leading to the formation of this Agreement or required to
          be provided by the Dealer at any time to BMW GB by this Agreement
          being false;

     f)   the Dealer repeatedly and to a substantial extent violating the
          provisions of Clauses 1.4 and 2.4 of this Agreement;

     g)   the Dealer or any Connected Undertaking of the Dealer (including, in
          the case of a firm, any partner thereof) or any of its or their
          Directors or any Key Personnel as specified in the Eighth Schedule
          hereto committing any indictable offence that might bring the Dealer
          or BMW GB or the standing of BMW GB or the Manufacturer into
          disrepute;

     h)   any dispute arising between BMW GB and the owners, shareholders or
          managers of the Dealer or between any of those persons which in the
          opinion of BMW GB impairs the effective management of the Dealer's
          business and the observance by the Dealer of its obligations
          hereunder;

     i)   the Dealer failing to obtain any consent required under this Agreement
          from BMW GB, save where BMW GB would have been obliged to grant the
          relevant consent.

     j)   any circumstance arising which BMW GB considers substantially impairs
          the business reputation of the Dealer;

                                      -15-

<PAGE>

     k)   the Dealer committing a serious breach of this Agreement or a breach
          which is similar to a breach previously remedied following notice
          under clause 11.5 of this Agreement; or

     l)   the Dealer taking any action that endangers the status of this
          Agreement under Commission Regulation (EC) No 1475/95 (known more
          generally as the Block Exemption).

11.5 Notice of Termination for Unremedied Breach

     Subject always to Clause 11.4 of this Agreement, if the Dealer commits a
     breach of any of its basic obligations under this Agreement which BMW GB
     considers capable of remedy BMW GB may give to the Dealer notice of such
     breach requiring the same to be remedied within 28 days, or such other
     period as BMW GB considers reasonable in the circumstances, and if the
     Dealer fails to remedy the breach within such period BMW GB may terminate
     this Agreement by not less than three months written notice to expire at
     any time.

11.6 Changes in Connected Undertaking

     Should any change occur or be proposed in the beneficial ownership of any
     Connected Undertaking of the Dealer the Dealer will advise BMW GB as soon
     as possible of such change or proposal.

11.7 Reorganisation of Network

     If BMW GB or the Manufacturer considers it necessary to reorganise the
     whole or a substantial part of its dealer network BMW GB shall be entitled
     to terminate this Agreement by giving not less than twelve months' notice
     in writing to the Dealer to expire at any time.

                                      -16-

<PAGE>

12.  CONSEQUENCES OF TERMINATION OF THE AGREEMENT

12.1 Cancellation of Orders

     Upon termination of this Agreement BMW GB reserves the right to cancel all
     or any unexecuted orders accepted by it in respect of Contract Goods. BMW
     GB is not obliged to do so but may fulfil any of the orders to the extent
     BMW GB sees fit provided that they do not exceed the purchase quotas set
     forth in the Dealer Order Objectives already established by BMW GB with the
     Dealer and provided also that the Dealer submits a list within two weeks of
     the termination of this Agreement in which the individual Customers and the
     particular Contract Goods for such Customers are adequately specified and
     to which copy sales contracts are attached.

12.2 Handling of the Warranty Obligations of the Dealer

     BMW GB is not obliged to do so, but may deliver to the Dealer BMW Parts to
     the extent the Dealer needs them to fulfil its warranty obligations to
     Customers which arose prior to the termination of this Agreement within the
     scope of the warranty of BMW GB pursuant to clause 6.3.

12.3 Return of the Contract Goods

     a)   BMW GB will within a period of 60 days after termination of this
          Agreement buy back the stocks of the Dealer's Contract Goods on the
          condition that they:

          (i)  were acquired directly from BMW GB or a BMW Dealer; and

                                      -17-

<PAGE>

          (ii) are included in the current sales programme of BMW GB at the time
               of the re-purchase; and

          (iii) are not sold; and

          (iv) are new, unused and undamaged and, where applicable, in their
               original retail packaging; and

          (v)  are clearly identifiable

     b)   BMW GB will be under no obligation to re-purchase Contract Goods if
          the termination of this Agreement is the result of actions of the
          Dealer which entitle or would have entitled BMW GB to terminate the
          agreement under clause 11.4 or 11.5.

     c)   The Dealer will at BMW GB's request sell its entire stock or part of
          its stock of Contract Goods to BMW GB.

     d)   Forthwith upon the termination of this Agreement any BMW Vehicles on
          consignment shall be returned at the expense of the Dealer (or at the
          expense of BMW GB if terminated by BMW GB) to BMW GB or to any place
          or person specified by BMW GB in the same condition as when received
          from BMW GB and on such return of the said Vehicles BMW GB shall repay
          the Dealer any sum deposited under the terms set out in the First
          Schedule hereto in respect of the BMW Vehicles returned less any sum
          considered by BMW GB to be due for loss damage or deterioration to the
          said Vehicles.

                                      -18-

<PAGE>

12.4 Re-Purchase Price

     a)   BMW Vehicles will be re-purchased at their cost price to the Dealer.
          The cost of any rectification or repairs necessary to any such BMW
          Vehicles will be deducted from the amount paid to the Dealer.

     b)   The price to be paid by BMW GB for the re-purchase of BMW Parts shall
          be the list price in force for such parts at the date on which the
          offer to repurchase is made by BMW GB less any increase in the price
          of such BMW parts during the period of twelve months prior to the date
          of such offer to repurchase, and less the normal discount granted by
          BMW GB and the average bonus earned by the Dealer in the same period.

12.5 Return Delivery

     Return delivery of the Contract Goods will be effected at the risk and cost
     of the Dealer, save that if the Contract Goods are delivered on the
     instructions of BMW GB to a place other than a Distribution Centre, the
     risk passes to BMW GB when the Contract Goods have been properly
     transferred to the forwarding agent or the carrier or other person
     responsible for the return delivery or a person designated by BMW GB. In
     this case, the transport costs are assumed

     by BMW GB, to the extent they exceed the costs of transport from the
     business premises of the Dealer to the Distribution Centre.

12.6 Removal of Advertising - Trademarks

     a)   Upon termination of this Agreement the Dealer will at its own expense
          immediately remove from its premises all advertising material of BMW
          GB or the Manufacturer and, insofar as it is the property of BMW GB or
          the

                                      -19-

<PAGE>

          Manufacturer or any of their Connected Undertakings, return it to BMW
          GB. Furthermore, the Dealer will offer to sell, at BMW GB's request,
          all items within the BMW GB Corporate Identity Programme which are the
          property of the Dealer, at net book value, subject to a maximum price
          of the current market price which, in default of agreement, will be
          specified by BMW GB.

     b)   Within one month of the termination of this Agreement the Dealer will
          at its own expense deliver to BMW GB all records, designs, manuals,
          specifications, handbooks, advertising material, corporate identity
          material, pylons, documents and any property belonging to BMW GB or
          the Manufacturer or any of their Connected Undertakings in its
          possession together with any copies thereof.

     c)   Forthwith upon the termination of this Agreement the Dealer shall at
          its own expense remove from its premises all signs containing the name
          BMW and/or the BMW emblem and/or any other trademark or trade or brand
          name of the Manufacturer and shall cease to use the name BMW and/or
          the BMW emblem and/or any other trademark or trade or brand name of
          the Manufacturer on any stationery, advertisement or other literature
          and will not take any steps that might lead the public to infer that
          it is a BMW Dealer or fail to correct any confusion that the Dealer is
          still a BMW Dealer.

12.7 BMW GB Servicing Equipment

     Within two months of the termination of this Agreement BMW GB may serve
     written notice on the Dealer requiring that the Dealer sell all or part of
     its stock of special tools, including electronic analysis and testing
     equipment, to BMW GB at a price determined by BMW GB as the reasonable
     trade value applicable at

                                      -20-

<PAGE>

     the time of such re-purchase. If BMW GB does not serve such notice on the
     Dealer then BMW GB may endeavour to assist the Dealer in selling such stock
     of special tools.

12.8 Rights and Duties Arising from the Termination of the Agreement

     a)   Termination of this Agreement for any reason shall not, unless
          otherwise expressly provided herein, affect any accrued rights of the
          parties hereto arising prior to the date of termination or any
          obligations which either expressly or from the context of this
          Agreement are intended to survive termination of the Agreement and
          without prejudice to the generality of the foregoing, it is expressly
          agreed that Clauses 10.1, 10.2, and 10.3 hereof will continue
          notwithstanding termination of this Agreement.

     b)   To the extent certain rights and duties are fixed in this Agreement
          for the time following the termination thereof, compliance therewith
          does not have the effect of extending the terminated Agreement.

13.  FINAL PROVISIONS

13.1 Incorporation of Schedules

     The following are deemed to be part of this Agreement:

     Schedules 1 to 8 inclusive

13.2 Alterations

     No modifications or alteration to this Agreement shall have effect unless
     the same is agreed in writing between the parties.

                                      -21-
<PAGE>

13.3 Law and Jurisdiction

     This Agreement shall be governed by and construed in all respects in
     accordance with the law of England. Subject to clause 13.10, BMW GB and the
     Dealer irrevocably agree that the Courts of England are to have exclusive
     jurisdiction to decide any disputes which may arise out of or in connection
     with this Agreement.

13.4 Force Majeure

     BMW GB shall not be liable to the Dealer for any loss or damage sustained
     by the Dealer as a result of any failure or delay on BMW GB's part in the
     performance of any of its obligations under this Agreement or any agreement
     for the sale of Contract Goods if and to the extent that such failure or
     delay shall be by reason of any matter or thing beyond the reasonable
     control of BMW GB including but not limited to Acts of God, labour
     disputes, transportation failure or delays, riots, delays in production,
     strikes or difficulties of the Manufacturer in proceeding with the
     production of Contract Goods.

13.5 Right of Set-Off

     At any time during or after the termination of this Agreement:

     13.5.1 BMW GB shall be entitled to set off against any claim made by or any
          amount due to the Dealer:

          a)   The Invoice Sum of any Contract Goods, or other goods, delivered
               to or as directed by the Dealer, remaining unpaid by the Dealer
               in whole or in part; and

          b)   the value of any amount due to or any claim by BMW GB from or
               against the Dealer, whether under this Agreement or under any
               other agreement between BMW GB and the Dealer.

     13.5.2 Without prejudice to the provision in Clause 13.5.1 above, BMW GB
          may apply in or towards the payment of any amount due to, or claim by,
          BMW GB from or against the Dealer:-

          a)   any sum of money deposited by the Dealer with BMW GB; and

          b)   any goods or other property whatsoever belonging to the Dealer
               which may be in the possession of BMW GB.

13.6 Headings

     The headings appearing herein are inserted for convenience only and shall
     not affect the construction of this Agreement.

13.7 Restrictive Trade Practices

     Neither party to this Agreement shall give effect to or enforce or purport
     to enforce any provision of this Agreement by virtue of which this
     Agreement is subject to registration under the Restrictive Trade Practices
     Act 1976 until the day after particulars of this Agreement have been
     furnished to the Director General of Fair Trading pursuant to the terms of
     Section 24 of that Act.

13.8 Waiver of Breaches

     Failure by BMW GB or the Dealer to enforce at any time any of the
     provisions of this Agreement shall not be construed as a waiver of any of
     BMW GB's or the Dealer's rights hereunder nor in any way affect the
     validity of this Agreement or any part thereof.

13.9 Notices

     13.9.1 Unless otherwise stated all notices to be served or given under this
          Agreement shall be in writing and for this purpose "writing" shall
          include transmission by facsimile transmission.

     13.9.2 Any notice to be served or given by either of the parties upon the
          other shall be sent by prepaid recorded delivery or registered post or
          (in the case of a notice to be given by BMW GB to the Dealer) may be
          delivered by hand to the address as provided below or by facsimile to
          the correct facsimile number at such address of the party to be served
          and shall be deemed to have been received by the addressee at the time
          of delivery or in the case of service by post 48 hours after posting
          (excluding Saturdays, Sundays and Public Holidays) or in the case of a
          facsimile transmission on the date received by the addressee if
          received on or before 2.00 pm on any day (excluding Saturdays, Sundays
          and Public Holidays) and if received after 2.00 pm it shall subject as
          aforesaid be deemed to have been received on the following day
          (excluding Saturdays, Sundays and Public Holidays).

     13.9.3 Any notice served on the Dealer shall be sent to the Dealer's last
          known address.

     13.9.4 Any notice served on BMW GB shall be sent to its registered office
          for the time being.

          Dealer's rights hereunder nor in any way affect the validity of this
          Agreement or any part thereof.

13.9 Notices

     13.9.1 Unless otherwise stated all notices to be served or given under this
          Agreement shall be in writing and for this purpose "writing" shall
          include transmission by facsimile transmission.

     13.9.2 Any notice to be served or given by either of the parties upon the
          other shall be sent by prepaid recorded delivery or registered post or
          (in the case of a notice to be given by BMW GB to the Dealer) may be
          delivered by hand to the address as provided below or by facsimile to
          the correct facsimile number at such address of the party to be served
          and shall be deemed to have been received by the addressee at the time
          of delivery or in the case of service by post 48 hours after posting
          (excluding Saturdays, Sundays and Public Holidays) or in the case of a
          facsimile transmission on the date received by the addressee if
          received on or before 2.00 pm on any day (excluding Saturdays, Sundays
          and Public Holidays) and if received after 2.00 pm it shall subject as
          aforesaid be deemed to have been received on the following day
          (excluding Saturdays, Sundays and Public Holidays).

     13.9.3 Any notice served on the Dealer shall be sent to the Dealer's last
          known address.

     13.9.4 Any notice served on BMW GB shall be sent to its registered office
          for the time being.

     13.9.5 Each party agrees to notify the other forthwith of any change in its
          registered office or address (as the case may be) or facsimile number.

                                      -22-
<PAGE>

13.10 Conciliation Procedure

     13.10.1 If the parties disagree in respect of any matter mentioned in
          13.10.2 below they may use the procedure agreed in 13.10.3 below for
          quick resolution of the dispute.

     13.10.2 The procedure in 13.10.3 applies to any disagreement in respect of:

          a)   a termination of this Agreement pursuant to sub-clauses 11.4,
               11.5, 11.6 or 11.7 of this Agreement; or

          b)   sales targets pursuant to sub-clauses 4.2.2 or 4.3.1; or

          c)   quantities of Contract Goods kept by the Dealer for display
               and/or stock pursuant to sub-clauses 4.2.3 or 4.3.3; or

          d)   BMW Vehicles, or quantity thereof, kept by the Dealer for
               demonstration, pursuant to sub-clause 4.2.3.

     13.10.3 The procedure to resolve the dispute shall be for either party as
          soon as reasonably practicable after the dispute arises to initiate
          reference to the conciliation panel referred to in 13.10.4 below by
          serving written notice on the other party stating the matter about
          which there is disagreement and requesting reference to the
          conciliation canel, providing a copy of such notice to the Company
          Secretary of BMW GB for the time being. Upon service of such a notice
          by either party the Company Secretary of BMW GB shall refer the matter
          to the conciliation panel and notify the Dealer that he has done so.

     13.10.4 The conciliation panel shall be such panel as is established for
          the purpose by separate arrangements from time to time between BMW GB
          and a representative body of the BMW Dealer Network

          ("the Representative Body") to the intent that there shall at all
          times while this Agreement is in force be a standing panel of four
          members, two of whom are nominated by BMW GB and two of whom are
          nominated by the Representative Body, who will receive reference of
          any matter under clause 13.10.3 and will seek to resolve any dispute
          properly so referred to the conciliation panel. The conciliation panel
          will determine its own procedure in all respects, subject to the
          arrangements agreed between BMW GB and the Representative Body. BMW GB
          and the Representative Body may at any time nominate substitutes for
          the persons they have respectively nominated as members of the
          conciliation panel, either permanently or, if a member of the panel is
          unsuitable, unable or unwilling to act in a particular matter, on a
          temporary basis.

     13.10.5 In the event that the above conciliation procedure has not been
          initiated by either party serving written notice under 13.10.3 within
          7 days after a dispute has arisen, or has not led to results accepted
          by both parties within one month of service of a notice under 13.10.3,
          or that at any time the interests of either party may be substantially
          impaired without recourse to a Court, either party shall be at liberty
          to commence any Court proceedings.

13.11 Value added and other Taxes

     To the extent that in any respect sums payable by the Dealer to BMW GB are
     from time to time subject to Value Added Tax or any other taxes, the Dealer
     shall pay such Value Added Tax or other taxes in addition to the sums
     payable.

14.  Definitions

1.   (a)  In this Agreement and in the Schedules hereto (unless the context
          otherwise requires) the words and expressions set out in Column (1)
          below will have the meanings set out opposite them in Column (2)
          below:

     (1)                                            (2)

<TABLE>
<S>                        <C>
"BMW Dealer"               a person having a written agreement with BMW GB or
                           any other importer of Contract Goods appointed by the
                           Manufacturer within the territory of the European
                           Economic Area, or with the Manufacturer, to sell
                           Contract Goods;

"BMW Parts"                all parts which are to be installed in or upon a BMW
                           Vehicle so as to replace components of that vehicle
                           which BMW GB offers in its current sales programme
                           for BMW Parts, irrespective of whether those parts
                           are made by the Manufacturer or supplied to the
                           Manufacturer or BMW GB by third parties.
</TABLE>

                                      -23-
<PAGE>

<TABLE>
<S>                        <C>
"BMW Vehicles"             new motor vehicles with three or more road wheels
                           which are included in BMW GB's sales programme as
                           notified by BMW GB from time to time and which bear a
                           trademark of the Manufacturer.

"Connected Undertakings"   (a) undertakings one of which directly or indirectly;

                                (i) holds more than half of the capital or
                                business assets of the other, or

                                (ii) has the power to exercise more than half
                                the voting rights in the other, or

                                (iii) has the power to appoint more than half
                                the members of the supervisory board, board of
                                directors or bodies legally representing the
                                other, or

                                (iv) has the right to manage the affairs of the
                                other;

                      or   (b) undertakings in relation to which a third
                           undertaking is able directly or indirectly to
                           exercise such rights or powers as are mentioned in
                           (a) above;

"Contract Goods"           BMW Vehicles and BMW Parts;

"Customer"                 a person who purchases or acquires, whether by way of
                           lease, hire, hire purchase or otherwise, one or more
                           Contract Goods for his own personal or commercial use
                           and not for re-sale in the course of business;

"Customer Facilities"      a)   finance, leasing, or similar products offered by
                                BMW GB or any of its Connected Undertakings; and

                           b)   BMW GB's Used Car Programme; and

                           c)   BMW GB's Accessories Programme; and

                           d)   Extended warranties

"Distribution Centre"      premises at which Contract Goods are stored by or on
                           behalf of BMW GB following importation into the
                           United Kingdom;

"Invoice Sum"              The Aggregate of:

                           (i) the price payable by the Dealer for the Contract
                           Goods in question (inclusive of any amounts payable
                           for extras and value added tax and any other taxes if
                           applicable);

                     and   (ii) the cost of transport between the Distribution
                           Centre and the place of delivery including all costs
                           of packaging, warehousing, loading, unloading and
                           checking;

"Manufacturer"             Bayerishe Motoren Werke Aktiengesellschaft of Munich,
                           Germany

"Non-BMW Parts"            all parts which are to be installed in or upon a BMW
                           Vehicle so as to replace components of that vehicle
                           which are not BMW Parts.

"Supply" and "Sell"        include other forms of supply such as leasing as well
                           as the ordinary meaning of the words;

"United Kingdom"           The United Kingdom of Great Britain and Northern
                           Ireland but including also for the purpose of this
                           Agreement, where the context admits, the Channel
                           Islands and the Isle of Man, which shall also for the
                           purpose of this Agreement be treated as within the
                           territory of the European Economic Area.

"Year of this Agreement"   the period commencing on 1st January in any year and
                           ending on 31st December in the same year.
</TABLE>

     (b)  The masculine shall include the feminine, the singular shall include
          the plural and person shall include a body corporate or partnership
          and vice versa.

     (c)  Any reference in this Agreement or in the Schedules by name to any
          document issued by BMW GB or the Manufacturer shall include any
          document amending or replacing the same from time to time.

                                      -24-
<PAGE>

                                 FIRST SCHEDULE

                            CONSIGNMENT - (VEHICLES)

BMW Vehicles will be supplied on consignment to the Dealer by BMW GB on the
terms and conditions set out in this Schedule.

1.   The Dealer will receive from BMW GB Dealer Order Objectives showing the BMW
     Vehicles allocated to it during any Year of this Agreement.

2.   The Dealer will within the time specified in the Dealer Order Objectives
     take delivery, using the forms supplied by BMW GB, of BMW Vehicles
     allocated.

3.   The Dealer will pay or arrange payment to BMW GB by direct debit on taking
     delivery of each BMW Vehicle a sum equal to the Invoice Sum of each BMW
     Vehicle or any lesser sum agreed by BMW GB but excluding the amount
     chargeable by reference to value added tax and any car tax.

4.   (i)  BMW GB will arrange transport of each BMW Vehicle to the Dealer's
          business premises.

     (ii) When a BMW Vehicle is delivered the Dealer will ensure that it is
          inspected for any damage or defects by a responsible person who, when
          such inspection has been carried out, should sign the carrier's
          receipt form. Should any BMW Vehicle have been damaged in transit the
          Dealer should immediately notify the carrier of such damage in
          writing. The Dealer will deal with any claim against the carrier in
          accordance with instructions issued from time to time by BMW GB.

5.   The Dealer will notify BMW GB immediately of the occurrence of any of the
     said events set out in the paragraph 11 of this Schedule stating the date
     and nature of the event.

6.   Forthwith upon the happening of any of the events specified in paragraph 11
     of this Schedule the relevant BMW Vehicle(s) will be deemed to be sold to
     the Dealer by BMW GB on the terms and conditions set out in the Second
     Schedule hereto and the Dealer will forthwith upon receipt of an invoice
     from BMW GB pay to BMW GB by direct debit the amount of value added tax and
     any car tax chargeable on the sale by BMW GB plus any balance due in
     respect of the Invoice Sum.

7.   The Dealer will indemnify BMW GB from and against loss of and all damage
     caused to each of the BMW Vehicles during the period (hereinafter called
     "the Risk Period") commencing at the time on which each of the BMW Vehicles
     arrives at the Dealer's business premises and ending on the earliest to
     occur of the following three events:

     (i)  the date of sale of each such BMW Vehicle; or

     (ii) the date on which each such BMW Vehicle is returned to any premises of
          BMW GB pursuant to paragraph 9 of this Schedule or Clause 12.3 (d) of
          this Agreement; or

     (iii) the date on which each such BMW Vehicle is delivered, with the prior
          written consent of BMW GB, to the premises of another BMW Dealer under
          a so called "swap arrangement";

          and for this purpose will effect with an insurance company or
          underwriter of repute and continue in force during the currency of
          this Agreement at its own expense a policy or policies of insurance on
          each of the BMW Vehicles for the Risk Period against all risks in a
          sum not less than the amount of the Invoice Sum of the BMW Vehicles.

          The Dealer will produce to BMW GB on demand satisfactory evidence of
          such insurance together with proof of payment of the current premiums.

8.   The Dealer undertakes whilst any BMW Vehicle is on consignment:

     (i)  not to alter in any way the specification of or type of equipment
          fitted to any BMW Vehicle without the prior written consent of BMW GB;

     (ii) to keep each BMW Vehicle properly housed in the Dealer's business
          premises or other premises previously approved in writing by BMW GB
          under proper supervision and to take all reasonable precautions for
          the safety thereof;

     (iii) not to remove any BMW Vehicle from the premises referred to in clause
          (ii) without the prior written consent of BMW GB;

     (iv) to allow any BMW Vehicle to be inspected by the servants or agents of
          BMW GB at any reasonable time;

     (v)  to keep accurate records showing the history of each BMW Vehicle from
          the time of receipt hereunder to the happening of any of the events
          specified in paragraph 11 of this Schedule;

     (vi) to make returns to BMW GB of stocks of BMW Vehicles on consignment at
          the close of business on such dates as are specified by BMW GB from
          time to time and on every day preceding the effective date of change
          in the amount chargeable by reference to value added tax and any car
          tax and such other returns as BMW GB may from time to time require;

                                      -25-
<PAGE>

     (vii) not to do anything that might cause the insurance policy or policies
          effected pursuant to paragraph 7 of this Schedule to be avoided by the
          insurance company concerned.

9.   (i)  The Dealer may on giving seven days notice in writing to BMW GB and
          within three days of the expiration of such notice return at its own
          expense any BMW Vehicle to BMW GB or to any person nominated by BMW GB
          in the same condition as when received;

     (ii) BMW GB may by notice in writing demand the return of any BMW Vehicle
          on consignment and within seven days of such demand the Dealer will
          either pay for such BMW Vehicle in full or at its own expense return
          to BMW GB or to any person nominated by BMW GB such BMW Vehicle in the
          same condition as when received and in case of default by the Dealer
          BMW GB will either alone or with or by others and without notice be
          entitled to enter at any time upon the premises where BMW Vehicles may
          be and remove them.

10.  Forthwith upon the return of any BMW Vehicle to BMW GB in accordance with
     the provisions of paragraph 9 of this Schedule BMW GB shall repay to the
     order of the Dealer any sum deposited under the provisions of paragraph 3
     of this Schedule in respect of each BMW Vehicle thereby affected less any
     sum considered by BMW GB to be due for loss damage or deterioration to any
     such BMW Vehicle.

11.  Each BMW Vehicle will be deemed to be sold to the Dealer by BMW GB upon the
     terms and conditions set out in the Second Schedule of this Agreement upon
     the happening of any of the following events;

     (i)  the BMW Vehicle is the subject of an offer of sale made by the Dealer
          which is accepted by a person or the subject of an offer to purchase
          made by a person which is accepted by the Dealer;

     (ii) the despatch by hand or by post of an application to the relevant
          registration authority for registration of the BMW Vehicle;

     (iii) the commencement of, or the despatch of the BMW Vehicle to another
          party for, modification adaptation of or addition to the BMW Vehicle
          (other than maintenance repair or the addition of any "slip-on-" type
          of accessory solely for sales promotion and not to the order of a
          Customer) or the giving of written instructions therefor;

     (iv) the BMW Vehicle is let out by the Dealer on hire or made the subject
          of a contract hire agreement;

     (v)  the BMW vehicle is made subject to a hire purchase agreement, credit
          sale agreement, charge, lien, or bill of sale;

     (vi) the BMW Vehicle is used on the road for demonstration purposes;

     (vii) the BMW Vehicle is purchased by the Dealer or applied or appropriated
          by the Dealer to stock or for its own use or that of another person;

     (viii) the specification of or type of equipment fitted to the BMW Vehicle
          is altered without the prior written consent of BMW GB;

     (ix) the BMW Vehicle is transferred to another BMW Dealer otherwise than
          under cover of a valid sale or return agreement or under a "swap
          arrangement" in either case approved by BMW GB; or

     (x)  the Dealer retains the BMW Vehicle for a period of more than 90 days
          or such other period specified by BMW GB from the date of its delivery
          to the Dealer Provided always that the parties hereto may extend such
          period in respect of any one or more of the BMW Vehicles on
          consignment by agreement in writing made before the said period would
          otherwise have expired for such further period (expiring not later
          than 12 months after the date of delivery of such vehicle to the
          Dealer) as they may agree.

                                      -26-
<PAGE>

                                 SECOND SCHEDULE

                        CONDITIONS OF SALE: BMW VEHICLES

BMW Vehicles will be sold to the Dealer by BMW GB on the terms and conditions
set out in this Schedule.

1.   Orders

     (i)  BMW GB will not be bound to supply the Dealer with any BMW Vehicle
          ordered until it sends the Dealer written confirmation of its
          acceptance of the Dealer's order which acceptance will not be
          despatched until BMW GB has confirmation from the Manufacturer that it
          will be able to manufacture the BMW Vehicle ordered.

     (ii) Each BMW Vehicle will normally be ready for despatch from the
          Distribution Centre not later than 4 months after the date upon which
          BMW GB has despatched its written acceptance of the Dealer's order.

     (iii) Notwithstanding the foregoing, any delivery date or delivery period
          quoted by BMW GB is a business estimate only and time will not be of
          the essence.

2.   Specifications

     BMW GB reserves the right to alter the design and specification of any BMW
     Vehicle or part thereof.

3.   Prices

     The price payable by the Dealer for each BMW Vehicle will be the price
     published in BMW GB's wholesale price list current at the date on which the
     relevant sale invoice is produced plus value added tax and any car tax.

4.   Delivery

     (i)  BMW GB will arrange transport of each BMW Vehicle to the Dealer's
          business premises.

     (ii) When any BMW Vehicle is delivered the Dealer must ensure that it is
          inspected for any damage or defects by a responsible person who, when
          such inspection has been carried out, should sign the carrier's
          receipt form. Should any BMW Vehicle have been damaged in transit the
          Dealer should immediately notify the carrier of such damage in
          writing. The Dealer will deal with any claim against the carrier in
          accordance with instructions issued from time to time by BMW GB.

     (iii) The Dealer will pay to BMW GB any cost incurred in connection with
          the delivery of each BMW Vehicle from the Distribution Centre to the
          Dealer's business premises.

5.   Risk

     Risk in each BMW Vehicle will pass to the Dealer upon delivery thereof to
     the Dealer's business premises.

6.   Retention of Property

     (i)  The property in and legal and beneficial ownership of each BMW Vehicle
          sold by BMW GB to the Dealer shall remain in BMW GB until the Dealer
          has paid to BMW GB:

          (a)  the full Invoice Sum in respect thereof; and

          (b)  the full Invoice Sum in respect of any other goods the subject of
               any other contract with BMW GB.

          Provided that sub-clauses (a) and (b) shall be construed and receive
          effect each as a separate clause and accordingly in the event of
          either of them being for any reason whatsoever unenforceable according
          to its terms, the other shall remain in full force and effect.

     (ii) So long as the property in and legal and beneficial ownership of any
          BMW Vehicle sold by BMW GB to the Dealer remains in BMW GB, BMW GB
          shall have the right, with or without prior notice to the Dealer, to
          retake possession of any such BMW Vehicle and for that purpose to
          enter upon any premises where any such BMW Vehicle is stored or is
          reasonably thought to be stored in any of the following events:

          (a)  The Dealer is in default of any of its obligations under any
               agreement with BMW GB; or

          (b)  The Dealer (not being a company, but including, in the case of a
               firm, the firm or any partner therein) commits an available act
               of bankruptcy, or becomes apparently insolvent, or (being a
               company) does anything or fails to do anything which would
               entitle any person to present a petition for winding up, or does
               anything or fails to do anything which would enable insolvency
               proceedings to be commenced, or (being a partnership) is
               dissolved; or

          (c)  The Dealer does anything or fails to do anything which would
               entitle a person to appoint a Receiver or entitle a Receiver or a
               person appointed by a Court to take possession of any of its
               assets; or

          (d)  The Dealer makes any assignment, agreement or composition with or
               executes any trust deed for creditors or ceases or threatens to
               cease to trade or dies or repudiates the agreement or is
               otherwise unable to pay its debts as they fall due.

                                      -27-
<PAGE>

     (iii) If the Dealer resells any BMW Vehicle before beneficial ownership of
          the BMW Vehicle has vested in it and BMW GB loses title to the BMW
          Vehicle in consequence, BMW GB's beneficial entitlement shall attach
          to the proceeds of sale (which expression includes any right to or
          claim for such proceeds) and the Dealer shall hold such proceeds of
          sale in trust for BMW GB and keep them separate from other money.

     (iv) The Dealer acknowledges that it is in possession of each BMW Vehicle
          sold by BMW GB to the Dealer solely as a fiduciary for BMW GB until
          such time as the Dealer has paid to BMW GB:

          (a)  the full Invoice Sum in respect thereof; and

          (b)  the full Invoice Sum in respect of any other goods the subject of
               any other contract with BMW GB.

          Provided that sub-clauses (a) and (b) shall be construed and receive
          effect each as a separate clause and accordingly in the event of
          either of them being for any reason whatsoever unenforceable according
          to its terms, the other shall remain in full force and effect.

     (v)  The Dealer will advise BMW GB immediately of any action by third
          parties, (for example, creditors of the Dealer), concerning any BMW
          Vehicle the property in which has not passed to the Dealer.

     (vi) BMW GB may maintain an action for the price of each BMW Vehicle sold
          notwithstanding that the property in such BMW Vehicle may not have
          passed to the Dealer.

7.   Payment

     (i)  Unless otherwise agreed the Dealer will make payments to BMW GB in
          accordance with the direct debit procedure operated by BMW GB

     (ii) Should any sum payable under this Agreement by the Dealer to BMW GB be
          overdue BMW GB reserves the right to suspend all further deliveries of
          BMW Vehicles.

8.   Warranty and Exclusion

     (i)  BMW GB warrants to the Dealer that a BMW Vehicle will be free from
          defects in materials and workmanship for one year beginning with the
          date of the first registration.

     (ii) If a valid claim arises in respect of a tyre, the Dealer will make a
          claim against the manufacturer of the tyre or its agent in the United
          Kingdom and in the event that the Dealer shall fail to obtain
          satisfaction in respect thereof, BMW GB will accept responsibility for
          such claim on receipt of satisfactory evidence that the Dealer has
          used its best endeavours in pursuing its claim against such
          manufacturer or agent.

     (iii) No claim under warranty will be considered unless the defect has been
          notified to BMW GB without delay and a warranty claim has been made in
          accordance with the provisions of the Fourth Schedule hereto.

     (iv) BMW GB will deal with any warranty claim in accordance with the
          provisions of the Fourth Schedule hereto.

     (v)  BMW GB warrants to the Dealer that any BMW Part fitted pursuant to a
          warranty claim will be free of defects from the date of installation
          in a BMW Vehicle under warranty until the expiration of the warranty
          period for such vehicle.

     (vi) The warranty does not apply if there is non-compliance with the
          Warranty Guidelines set out in any relevant Warranty and Service
          Handbook issued by BMW GB from time to time.

     (vii) The warranty will not be affected by any change of ownership of the
          BMW vehicle.

     (viii) The warranty given by BMW GB is in substitution for and to the
          entire exclusion of any condition term or warranty relating to the
          quality or fitness of any BMW Vehicle whether express or implied by
          statute common law or otherwise howsoever.

                                      -28-
<PAGE>

                                 THIRD SCHEDULE

                                 PARTS BUSINESS

                  A: CONDITIONS OF SALE AND DELIVERY: BMW PARTS

BMW Parts will be sold and delivered to the Dealer by BMW GB on the terms and
conditions set out in this Schedule.

1.   Orders

     (i)  The Dealer will place all orders for BMW Parts in the manner specified
          by BMW GB from time to time.

     (ii) BMW Parts will be despatched to the normal address within the
          Territory used by BMW GB to invoice the Dealer unless otherwise
          requested in writing by the Dealer.

     (iii) BMW GB will endeavour to comply with any delivery time quoted by it
          to the Dealer but any delivery time quoted by BMW GB is a business
          estimate only and time shall not be of the essence.

2.   Specifications

     BMW GB reserves the right to alter the specification of any BMW Part sold
     hereunder from that shown in any of its current price lists or other
     publications provided that the functioning of the BMW Part will not be
     adversely affected thereby.

3.   Prices

     The price payable by the Dealer for any BMW Part will be the recommended
     retail price published in BMW GB's price list current at the date on which
     the relevant invoice is produced subject to any discounts that may have
     been determined by BMW GB at the date of invoice. Any price quoted for the
     BMW Parts will be exclusive of the costs of any special packaging required
     by the Dealer.

4.   Delivery

     (i)  It will be the Dealer's responsibility to examine each BMW Part as
          soon as practicable following delivery and to notify BMW GB whether or
          not the BMW Part has been delivered in a satisfactory condition.
          Should any BMW Part have been damaged in transit or be missing from
          the delivery the Dealer should immediately notify BMW GB of such
          damage or shortfall in the manner specified by BMW GB from time to
          time by 12 midday on the day of delivery unless otherwise agreed by
          BMW GB in writing. The Dealer will handle any claim in accordance with
          instructions issued from time to time by BMW GB. Any BMW Parts
          returned to BMW GB by the Dealer will be at the expense and risk of
          the Dealer unless returned on BMW GB's delivery vehicles.

     (ii) BMW GB will bear the cost of any carriage charges relating to orders
          placed by the Dealer except that the Dealer will pay any charge made
          by BMW GB for orders delivered at the request of the Dealer outside
          the normal delivery schedules of BMW GB from time to time applicable.

5.   Risk

     Risk in each BMW Part will pass to the Dealer upon delivery thereof to the
     Dealer's business premises or to such other destination as may have been
     specified by the Dealer.

6.   Retention of Property

     (i)  The property in and legal and beneficial ownership of each BMW Part
          sold by BMW GB to the Dealer shall remain in BMW GB until the Dealer
          has paid to BMW GB:

          (a)  the full Invoice Sum in respect thereof and

          (b)  the full Invoice Sum in respect of any other goods the subject of
               any other contract with BMW GB.

          Provided that sub-clauses (a) and (b) shall be construed and receive
          effect each as a separate clause and accordingly in the event of
          either of them being for any reason whatsoever unenforceable according
          to its terms, the other shall remain in full force and effect.

     (ii) So long as the property in and legal and beneficial ownership of any
          BMW Part sold by BMW GB to the Dealer remains in BMW GB, BMW GB shall
          have the right, with or without prior notice to the Dealer, to retake
          possession of any such BMW Part and for that purpose to enter upon any
          premises where any such BMW Part is stored or is reasonably thought to
          be stored in any of the following events:

          (a)  The Dealer is in default of any of its obligations under any
               agreement with BMW GB; or

          (b)  The Dealer (not being a company, but including, in the case of a
               firm, the firm or any partner therein) commits an available act
               of bankruptcy or becomes apparently insolvent, or (being a
               company) does anything or fails to do anything which would
               entitle any person to present a petition for winding up, or does
               anything or fails to do anything which would enable insolvency
               proceedings to be commenced, or (being a partnership) is
               dissolved; or

          (c)  The Dealer does anything or fails to do anything which would
               entitle a person to appoint a Receiver or entitle a Receiver or a
               person appointed by a Court to take possession of any of its
               assets; or

          (d)  The Dealer makes any assignment, agreement or composition with or
               executes any trust deed for creditors or ceases or threatens to
               cease to trade or dies or repudiates the Agreement or is
               otherwise unable to pay its debts as they fall due.

     (iii) If the Dealer resells any BMW Part before beneficial ownership of the
          BMW Part has vested in it and BMW GB loses title to the BMW Part in
          consequence, BMW GB's beneficial entitlement shall attach to the
          proceeds of sale (which expression includes any right to or claim for
          such proceeds) and the Dealer shall hold such proceeds of sale in
          trust for BMW GB and keep them separate from other money.

                                      -29-
<PAGE>

     (iv) The Dealer acknowledges that it is in possession of each BMW Part sold
          by BMW GB to the Dealer solely as a fiduciary for BMW GB until such
          time as the Dealer has paid to BMW GB:

          (a)  the full Invoice Sum in respect thereof; and

          (b)  the full Invoiced Sum in respect of any other goods the subject
               of any other contract with BMW GB

          Provided that sub-clauses (a) and (b) shall be construed and receive
          effect each as a separate clause and accordingly in the event of
          either of them being for any reason whatsoever unenforceable according
          to its terms, the other shall remain in full force and effect.

     (v)  The Dealer will advise BMW GB immediately of any action by third
          parties, (for example, creditors of the Dealer), concerning any BMW
          Part the property in which has not passed to the Dealer.

     (vi) BMW GB may maintain an action for the price of each BMW Part sold
          notwithstanding that the property in such BMW Part may not have passed
          to the Dealer.

     (vii) Until such time as the Dealer becomes the owner of any BMW Part, the
          Dealer will store such BMW Part on his premises separately from his
          own goods or those of any other person and in a manner which makes the
          BMW Part readily identifiable as the goods of BMW GB, but if the BMW
          Part is not so stored, it shall be assumed that all BMW Parts
          remaining in stock with the Dealer were those BMW Parts most recently
          delivered by BMW GB and that BMW Parts have been sold by the Dealer on
          a first in first out basis.

     (viii) If any BMW Part, the property of BMW GB, is admixed with goods the
          property of the Dealer or is processed with or is incorporated
          therein, the product thereof shall become and/or shall be deemed to be
          the sole and exclusive property of BMW GB. If any BMW Part, the
          property of BMW GB is admixed with goods the property of any person
          other than the Dealer or is processed with or incorporated therein,
          the product thereof shall become and/or shall be deemed to be owned in
          common with the other person.

7.   Payment

     (i)  Unless otherwise agreed the Dealer will make payment to BMW GB in
          accordance with the direct debit procedure operated by BMW GB.

     (ii) Payment for the BMW Parts will be made at the end of the month
          following the month in which BMW GB's invoice is provided.

     (iii) Should any sum payable under this Agreement by the Dealer to BMW GB
          be overdue BMW GB reserves the right to suspend all further deliveries
          of BMW Parts.

8.   Packaging

     Unless otherwise advised BMW GB's packaging material identified as
     returnable (including pallets and roll cages) should be returned to BMW GB
     in accordance with instructions issued by BMW GB from time to time. If such
     packaging materials are returned to BMW GB in a damaged condition the
     Dealer will reimburse BMW GB therefor.

9.   Complaints

     Complaints in respect of incomplete consignments, of consignments which do
     not comply with the type and quantity ordered, or which comprise BMW Parts
     showing recognisable external defects, are to be notified to BMW GB in the
     form and manner specified by BMW GB from time to time. Failing notification
     in the foregoing manner, the consignment will be deemed to have been
     accepted by the Dealer without reservation.

10.  Warranty obligation and Exclusion

     (i)  BMW GB warrants to the Dealer that unless a longer period is specified
          in the Parts Guide a BMW Part will be free from defects in material
          and workmanship for twelve months from sale to a Customer or, if the
          BMW Part is installed by the Dealer into a BMW Vehicle from the date
          of installation, subject to the limitation set out in paragraph 8(v)
          of the Second Schedule.

     (ii) No claim under warranty will be considered unless the defect has been
          notified to BMW GB without delay and a warranty claim has been made in
          accordance with the provisions of the Fourth Schedule hereto.

     (iii) BMW GB will deal with any warranty claim in accordance with the
          provisions of the Fourth Schedule hereto.

     (iv) The warranty does not apply if there is non-compliance with the
          Warranty Guidelines set out in any relevant Warranty and Service
          Handbook, or other warranty document related to BMW Parts, issued by
          BMW GB from time to time.

     (v)  Any warranty will not be affected by any change of ownership of the
          BMW Part in question.

     (vi) The warranty given by BMW GB is in substitution for and to the entire
          exclusion of any condition term or warranty relating to the quality or
          fitness of any BMW Parts whether express or implied by statute common
          law or otherwise howsoever.

11.  BMW GB operates a buyback system in accordance with arrangements and on
     conditions notified by BMW GB from time to time in which the Dealer is free
     to participate.

                                      -30-
<PAGE>

                               B: PARTS STANDARDS

The following provisions give details of the standards required of the Dealer in
providing a parts service that meets the standard demanded by BMW Customers.

1.   Inventory-keeping of BMW Parts

     The Dealer will maintain an appropriate stock of BMW Parts to conform to
     Clause 4.3 of this Agreement.

     In addition to the storing guidelines in this Schedule the Dealer will:

     -    accept and store deliveries of BMW Parts which are supplied by BMW GB
          free of charge in connection with recall measures, even though no
          explicit order for them has been placed:

     -    accept and pay for the BMW GB recommended dealer kit of service items
          for new vehicles and revised models of existing vehicles. Advance
          information will be given and costs kept to a minimum.

     The Dealer will install and operate systems to control its stock in
     accordance with reasonable BMW GB requirements.

2.   Parts Exchange Service

     The exchange programme and processing details are detailed in separate
     literature issued by BMW GB

3.   Stock Orders

     Subject to clause 4.3.3 of this Agreement, stock orders will be submitted
     by the Dealer to properly replenish its warehouse with BMW Parts. In this
     connection orders will be placed in accordance with arrangements notified
     by BMW GB to the Dealer which must be strictly maintained.

4.   Emergency Orders

     In the event of an unexpected demand and in unforeseen cases of special
     urgency the Dealer may place an emergency order for the purpose of a
     short-term delivery of BMW Parts. Deliveries made on account of emergency
     orders may be charged with reduced discount determined by BMW GB from time
     to time.

5.   Warehouse Equipment

     Buildings and areas in which BMW Parts are stored and/or sold are to be
     equipped and maintained in a manner to meet the requirements of BMW GB and
     the standard expected by BMW Customers.

     The warehouse is to be set up and equipped in such a manner that:

     -    all categories of BMW Parts may be stored with maximum protection
          against the danger of damage while the available space is being used
          most efficiently;

     -    efficient acceptance of the delivered BMW Parts by the Dealer is
          provided, in accordance with BMW GB requirements notified to the
          Dealer from time to time;

     -    assembly space, special packing material and transportation facilities
          are provided for the shipment of BMW Parts;

     -    the office space from which the storage space is managed is arranged
          adjoining the warehouse if possible.

     -    counter facilities are in accordance with requirements specifed by BMW
          GB from time to time.

6.   Warehouse Size

     The size of the warehouse must be large enough to hold the volume of BMW
     Parts which is required by the volume of the services rendered by the
     Dealer, with consideration of demands by its own workshop, trade and cash
     sales. The standard of the warehouse has to be such that rational,
     economical and functional stock-keeping is facilitated in compliance with
     the Dealer's sales volume.

     Suggested values to determine the size of the warehouse are available from
     BMW GB.

7.   Personnel

     The requirements relating to personnel and training are as notified by BMW
     GB from time to time.

                                      -31-
<PAGE>

8.   Obligations to Maintain a Supply of Documentation of Parts

     For the purposes of information and efficiency sufficient quantities of
     technical literature, microfilm reading devices, parts service leaflets,
     electronic data reading devices and any other relevant devices for similar
     purposes should be maintained by the Dealer.

     In case of the new publication of a leaflet one copy will be furnished free
     of charge to the Dealer. The Dealer may obtain additional copies which will
     be charged to the Dealer's account. Microfilms and other film material
     relating to parts service will be delivered to the Dealer and charged to
     its account.

     The Dealer also will receive amendments of the parts literature, which also
     will be charged to its account. The Parts data media updating service
     operates by exchanging new data media against the old. The old data media
     are to be returned to BMW GB at the instruction of BMW GB. All microfilm
     and data media supplied by BMW GB remain confidential to BMW GB who also
     own the copyright therein and the Dealer shall not part with possession
     thereof to any third party or make any copies thereof.

9.   Parts Business Activities

     BMW GB endeavours to assist the Dealer in handling the duties assigned to
     it by BMW GB for the parts business. For this purpose BMW GB will engage
     regional managers. These regional managers will advise and assist the
     Dealer in building up and maintaining an effective organisation of the
     Dealer's parts business to provide the highest level of Customer Service.
     At the request of BMW GB the Dealer will assist BMW GB in carrying out
     parts analyses research and planning operations.

     In order to facilitate effective assistance to the Dealer it will be
     essential that the Dealer provides the regional manager with all required
     information and grants him access to any necessary documentation.

     In this connection the Dealer will regularly and in compliance with the
     wishes of BMW GB pursue and conduct a market analysis with a view to
     competition in the parts business. In addition the Dealer will supply
     statistical information in the form reasonably required by BMW GB from time
     to time.

10.  Architectural and Equipment Consultation

     In the event of major building and equipment projects in respect of the
     Dealer's parts business BMW GB will assist the Dealer as far as possible
     with regard to the planning and organisation of its storage area. In such
     cases the dealer will co-operate closely with the employees of BMW GB.

11.  Publicity and Sales Promotion

     In addition to its own publicity campaigns the Dealer will participate in
     national promotional activities of BMW GB and other promotional activities
     agreed with BMW GB as being suitable for the Dealer. For this purpose BMW
     GB will furnish the Dealer with promotional material which is suitable for
     the appropriate campaign, either free or upon reasonable payment, as
     determined by BMW GB.

                                      -32-
<PAGE>

                                 FOURTH SCHEDULE

                         WARRANTY AND CLAIMS PROCEDURES

1.   General

     This Schedule governs the handling of warranty claims resulting from sales
     of Contract Goods to Customers.

2.   Basis for Warranty and Goodwill settlements

     (i)  Grantor of the Warranty

          The Dealer will provide a warranty in respect of any Contract Goods in
          accordance with clause 6.3 (b) of this Agreement. In the case of the
          sale of a BMW Vehicle the giving by the Dealer of a warranty to the
          Customer in accordance with the Warranty and Service Handbook as
          supplied by BMW GB from time to time will constitute compliance by the
          Dealer with its obligation under Clause 6.3 (b) of this Agreement.

     (ii) Goodwill Claims

          BMW GB may in its absolute discretion wholly or partly accept the cost
          of labour and/or materials incurred in the rectification of defects
          appearing after the expiration of any warranty period but this shall
          not imply recognition of any legal liability. Goodwill claims will
          only be considered if the BMW GB inspection and maintenance servicing
          has been carried out regularly and correctly in accordance with the
          service booklet by a BMW Dealer and the Customer has followed the
          instructions for use and care of the Contract Goods in accordance with
          any instructions or handbook issued with the Contract Goods.

3.   Performance of Warranty and Goodwill Work

     (i)  General requirements

          The Dealer will use its best endeavours to ensure that warranty and
          goodwill work is given preference to other services performed by its
          workshop. Customers in transit from the United Kingdom or abroad have
          the right to expect any warranty or goodwill repair work essential to
          the safety and good working order of their BMW Vehicle to be given
          priority by the Dealer.

     (ii) Investigation of Customer's Claim

          All warranty and goodwill claims made by a Customer must be thoroughly
          investigated by the Dealer. Should a claim not be justified the Dealer
          will explain this to the Customer in a suitable manner. The Dealer
          should only forward a claim to BMW GB if it is convinced that the
          claim is justified.

     (iii) Order of the Customer

          The Dealer will only undertake warranty or goodwill work for a
          Customer once the Customer or his authorised agent has signed a formal
          workshop repair order setting out details of the work to be performed.

     (iv) Method of Warranty and Goodwill Work

          Should a defect be of such a nature that it may be rectified by
          alternative methods (i.e. repair or the exchange of a complete unit)
          the most economic method shall be adopted. The interest of the
          Customer must be suitably observed and, if in doubt, the Dealer should
          consult BMW GB for advice as to the best method of handling
          rectification.

     (v)  Authorisation of BMW GB in particular cases

          In deciding whether or not work falls within the terms of the
          warranty, the Dealer shall rely on its own discretion except that
          where the repair or replacement of a major unit (as defined by BMW GB
          from time to time) or paint work the cost of which exceeds the amount
          specified by BMW GB in the warranty manual or any other item that BMW
          GB from time to time may stipulate is concerned, the Dealer shall
          obtain the authorisation of BMW GB before proceeding.

4.   The Handling of Warranty Claims between the Dealer and the Customer.

     The Dealer will perform warranty services free of charge in respect of any
     Contract Goods delivered by a supplier within the territory of the European
     Economic Area authorised directly or indirectly by the Manufacturer to the
     extent that the Dealer will be entitled to reimbursement under the warranty
     given by BMW GB under Clause 6.3 (a) of this Agreement. The Dealer will
     perform the said services irrespective of whether the Contract Goods
     concerned have been purchased from itself or not.

                                      -33-
<PAGE>

     Where the Dealer performs services for a Customer otherwise than under
     warranty and makes a goodwill claim in respect thereof to BMW GB the normal
     charge for services and materials may be made to the Customer in the first
     instance. If a goodwill claim is accepted in its entirety by BMW GB no
     costs shall be borne by the Customer and accordingly any sum that has been
     charged to the Customer will be reimbursed to the Customer by the Dealer.

     Where a goodwill claim is accepted only in part, a proportional refund
     should be made by the Dealer immediately to the Customer of any charge made
     to the Customer equivalent to the proportion of the actual cost of
     effecting the repair to the Dealer that is refunded by BMW GB. The
     Customer's refund should be the relevant proportion of the price charged to
     it. The Dealer will inform the Customer immediately if the claim is
     rejected by BMW GB.

5.   Handling of Warranty Claims between the Dealer and BMW GB

     (i)  Claims

          In order to obtain reimbursement of expenditure incurred in carrying
          out warranty or goodwill work, the Dealer must submit a claim to BMW
          GB therefor within the period and in the manner specified by BMW GB
          from time to time.

     (ii) Requirements of Claims

          Where the Dealer submits a request for reimbursement it must retain
          available at its premises a workshop order giving complete details of
          the work carried out together with a mechanically stamped job card to
          show repair time expended and information as to the name and address
          of the owner of the vehicle/part concerned, and other means of
          identifying the vehicle/part. The details set out in the warranty
          claim must be identical to those in the workshop order.

     (iii) Validation of Claims

          In submitting a warranty claim the Dealer is vouching for the claim
          and the complete accuracy of the details stated. The Dealer will make
          a particular effort to supply any details likely to be considered
          relevant by BMW GB in deciding whether or not to reimburse expenditure
          as a goodwill claim. Such details will include, but will not be
          limited to, the mileage, date of registration and details of the
          previous owners of the BMW Vehicle concerned. Where a claim is made in
          relation to parts which have already been replaced, details of the
          original repair will be relevant and must be taken from the relevant
          invoice.

6.   Reimbursement of Dealer's Expenses

     (i)  General Extent of Reimbursement

          Where BMW GB accepts that a Customer has a valid claim under a
          warranty given by the Dealer subject to 6 (v) below BMW GB will
          reimburse the costs of rectifying the defects and will at its option
          repair or replace defective parts and any other parts or components
          damaged thereby at the agreed prices/rates for parts and labour. Parts
          exchanged in this way will become the property of BMW GB and will be
          returned, at the Dealer's expense and risk unless returned on BMW GB's
          delivery vehicles, to BMW GB within the time specified in the BMW
          warranty manual.

     (ii) Reimbursement for Labour

          The Labour costs expended by the Dealer will be paid according to the
          work/time unit allowable for the work performed in accordance with the
          BMW GB work/time schedules. Should the Dealer not provide details of
          the work/time units actually spent on the work performed, costs will
          be reimbursed by BMW GB on the basis of the actual time expended
          (provided this is not unreasonable) converted into work/time units.
          BMW GB will determine the amount to be reimbursed to the Dealer in
          respect of each work/time unit and will from time to time, review the
          rate of such allowance. In deciding what charge should be made in
          respect of each work/time unit, BMW GB will rely upon receiving an
          accurate return, at intervals specified by BMW GB, setting out the
          Dealer's overheads in the provision of servicing.

                                      -34-
<PAGE>

     (iii) Reimbursement for Services rendered by Third Parties

          Where warranty services are rendered by a third party to the order or
          at the request of the Dealer with the prior consent of BMW GB, BMW GB
          will reimburse the Dealer the reasonable costs (plus VAT) connected
          therewith.

     (iv) Examination Right of BMW GB

          BMW GB is authorised to have its representatives examine the proper
          processing of the warranty claims at the Dealer's premises at any
          reasonable time. For this purpose the Dealer shall hold ready for
          inspection by the appropriate BMW GB representative his entire records
          and vouchers such as workshop orders, time stamp cards and/or control
          room lists, receipts for parts removed, invoices for replacement parts
          and BMW GB credit notes in case of goodwill settlements, insofar as
          these records are connected with warranty and goodwill settlement
          claims.

          The Dealer shall retain such warranty records in a suitable manner for
          the period specified in the warranty manual in order that an
          inspection on short notice will be possible at any time.

     (v)  Non Refundable Costs

          No refund will be made for costs incurred for carrying out the
          pre-delivery inspection or maintenance or servicing or safety checks
          or for minor adjustment and resetting or unless otherwise specified by
          BMW GB. the time expended on diagnosis of the defect.

          Expenditure incurred by the Dealer as a result of incorrect diagnosis
          of an apparent defect, or inadequate or negligent service work, is not
          recoverable from BMW GB.

          Also excluded are expenses incurred because of non compliance with
          technical information furnished by BMW GB or because of non-compliance
          with recognised rules of servicing and maintenance in the motor trade
          or costs which result from repair work which has been badly performed.

                                      -35-
<PAGE>

                                 FIFTH SCHEDULE

                              SERVICE REQUIREMENTS

The following provisions govern the requirements made by BMW GB for Customer
service by authorised BMW Dealers. They have the essential purpose of
guaranteeing to the Customer a service which meets his reasonable expectations.

1.   Acceptance, Storage and Delivery of BMW Vehicles

     (i)  Acceptance

          The Dealer will accept BMW Vehicles from the BMW GB appointed delivery
          company in accordance with the requirements of the First and Second
          Schedules.

     (ii) Storage

          BMW Vehicles stored by the Dealer will be stored in accordance with
          instructions given by BMW GB from time to time.

     (iii) Delivery to Customers

          With the knowledge that the delivery of BMW Vehicles will affect the
          Customer's opinion with regard to the quality of the vehicle and
          customer service, the Dealer will perform the following services
          and/or actions prior to or at the time of the delivery to the
          Customer:

     (a)  Prior to the delivery the Dealer will perform a pre-delivery
          inspection free of charge to the Customer. In compliance with the
          service booklet and/or instructions issued from time to time by BMW GB
          the Dealer will perform the specified works and the Dealer will enter
          this pre-delivery inspection into the service booklet and certify the
          entry with its official stamp, date and signature. In the event that
          the Customer collects the vehicle from BMW GB then BMW GB will perform
          the pre-delivery inspection on behalf of the Dealer and will charge
          the Dealer accordingly;

     (b)  The Dealer will maintain records for all BMW Vehicles serviced
          including details of all pre-delivery inspections undertaken;

     (c)  Prior to the release of the vehicle the Dealer will check whether all
          documents belonging to the vehicle as prescribed by the Manufacturer
          are updated and available, such as the owner's handbook, the service
          booklet, the register of dealers and emergency service locations, any
          directions for use etc. These documents shall be handed to the
          Customer at the time the vehicle is released to him.

     (d)  The Dealer will instruct the Customer in the operation of the BMW
          Vehicle and the regulations and facilities relating to warranty and
          service before or at the time of handover of the BMW Vehicle.

2.   Performance of Maintenance and Repair Works

     (i)  Obligation of the Dealer

          The Dealer will perform all maintenance and repair work prescribed by
          BMW GB in compliance with the instructions valid at the time. For this
          purpose it is necessary that the Dealer uses the special tools and
          workshop equipment prescribed by BMW GB at the time. The Dealer will
          make sure that all orders for maintenance and repair work are accepted
          properly using the repair order forms specified or approved by BMW GB
          and signed by the Customer.

     (ii) Maintenance Works

          The Dealer will perform all maintenance works within the prescribed
          intervals in compliance with the BMW GB work instructions valid at the
          time. The performance of the maintenance work is to be certified in
          the service booklet.

     (iii) Product Modification Campaigns

          The Dealer will participate in all product modification and/or recall
          campaigns initiated by BMW GB, and, if required, the Dealer will
          perform the examination or work prescribed by BMW GB in relation to
          BMW Vehicles the subject of the campaign, regardless of whether the
          BMW Vehicles in question have been purchased from the Dealer or not.

                                      -36-
<PAGE>

          The processing of such campaigns will be governed by the instructions
          issued by BMW GB or the Manufacturer on each occasion or, if no other
          arrangements have been made, by the warranty and goodwill-settlement
          provisions then in effect.

          The Dealer will use its best endeavours to ensure that all BMW
          Vehicles subject to the product modification or recall campaign sold
          by it, or serviced by it in accordance with the customer service file,
          will be produced to it or to an authorised BMW Dealer located most
          conveniently to the Customer, in order that the appropriate
          examination and/or modifications may be performed.

          This applies also to affected new BMW Vehicles and vehicles which have
          been resold in the meantime. In this case the Dealer will endeavour to
          locate the vehicle owner and to inform him accordingly. Should such
          efforts remain unsuccessful the Dealer will advise BMW GB in writing.

     (iv) Free Services

          The Dealer will carry out any service specified from time to time by
          BMW GB as being free to the Customer in respect of the labour content
          in accordance with separate instructions issued by BMW GB.

3.   Workshop

     (i)  The size of the workshop and its associated areas will be as
          recommended by BMW GB such that all BMW Vehicles sold by the Dealer
          and all BMW Vehicles being operated in the Territory may be serviced.
          If several BMW Dealers should be operating in the same Territory this
          should be duly considered in the determination of the workshop size.

     (ii) Workshop Appearance

          The appearance of the workshop shall be in keeping with the BMW
          Corporate identity Programme. The Dealer will ensure the workshop and
          its associated areas are kept clean and tidy at all times.

     (iii) Workshop Equipment

          A faultless performance of the maintenance and repair work on BMW
          Vehicles requires that the Dealer has available a sufficient quantity
          of all workshop equipment items prescribed by BMW GB and that these
          are maintained to the highest standard and are operational at all
          times.

          The Dealer will ensure that it is equipped with all special tools
          which are mandatory for the operation of a BMW Dealer service
          department.

     (iv) Workshop Organisation

          In order that a Dealer's workshop may be operated profitably it is
          necessary that a workshop organisation is established and regulated in
          compliance with the best principles of business administration. For
          this purpose the Dealer shall apply in its individual workshop
          organisation the instructions and organisational documentation
          established by BMW GB as notified to the Dealer from time to time. In
          order to guarantee the profitability of the Customer service the
          Dealer will appoint a responsible person for the performance and
          control of suitable business administration measures.

4.   Advice to the Dealer by BMW

     (i)  Architectural and Equipment Advice

          BMW GB and/or its regional manager and other specialists will give
          advice to the Dealer in respect of the design and layout of the
          workshop and the requirements in respect of workshop equipment.

     (ii) Advice in regard to Organisation/Business Administration

          The BMW GB regional manager and other appropriate employees of BMW GB
          will be ready to assist and support the Dealer in regard to all
          organisational and administrative service questions.

     (iii) Provision of Service Statistics

          Every Dealer needs suitable up-to-date aids to decision making to
          control and evaluate its workshop results. For this purpose the Dealer
          will supply service statistical information in the form reasonably
          required by BMW GB from time to time.

5.   Personnel Requirements

     (i)  The Dealer will employ a sufficient number of technically qualified
          service personnel for the performance of maintenance and repair work
          in proportion to the BMW Vehicle volume to be serviced by it.

          The number of the required service employees will be governed by the
          BMW GB recommendations valid at the time.

     (ii) All service employees of the Dealer will wear BMW GB recommended
          working clothes. The attitude, appearance and technical knowledge of
          the management personnel of the workshop as well as that of all
          employees dealing with the Customers (for instance at the service
          reception etc.) have a vital importance to the image of the BMW
          customer service. The Dealer will ensure that the appropriate
          employees are always polite, helpful, efficient, correct and
          product-supportive in their dealings with Customers.

          The Dealer will immediately investigate any complaint made by a
          Customer and use its best endeavours to eliminate the cause of the
          complaint.

     (iii) The Dealer will ensure that the service employees have the required
          knowledge with regard to the Contract Goods, modern repair methods,
          methods of workshop management, discipline and organisation and that
          they know how to react with Customers.

          The Dealer shall assign all service employees to training courses held
          by BMW GB and/or at training locations determined by BMW GB. In
          addition the Dealer will regularly provide training and advanced
          training instructions to its service employees itself.

                                      -37-
<PAGE>

6.   Service Documentation - Certifications

     (i)  Customer Service Documentation

          BMW GB supplies the Dealer with customer service documentation which
          must be available to service employees at all times.

          Upon its first appointment as a Dealer BMW GB will supply to the
          Dealer an initial information pack of customer service documentation.
          Future orders should be made in the usual manner of ordering parts.
          The Dealer will stock a sufficient supply of dealer/emergency service
          lists and Aftersales Marketing Literature to serve as handouts for
          customers.

7.   Customer Servicing

     (i)  Customer Service

          It is a prerequisite in offering a high level of service to Customers
          and for the prevention of Customer complaints that the Dealer and its
          personnel do not make any detrimental remarks concerning BMW GB or the
          Manufacturer, the Contract Goods, other contractors of BMW GB or the
          Manufacturer or employees of any of them.

          The Dealer will ensure that the Customer is promptly and correctly
          advised of any defects which become apparent whilst work is being
          carried out.

          Repairs must be guaranteed for specific mileage and time periods.

          Methods of payment for service and repairs should be notified to the
          owner prior to the acceptance of the work.

          Parts replaced during repair or service should be made available for a
          reasonable period for inspection by the Customer.

          Permission of the Customer should always be sought for additional work
          which may present itself during service or repair, and his signed
          approval obtained, if possible.

     (ii) Customer Complaints

          The Dealer will make sure that it satisfactorily clarifies and settles
          any enquiries and complaints presented by Customers. In exceptional
          cases only, BMW GB itself will handle such Customer Enquiries, and if
          it does so, will use reasonable endeavours to ensure that the Dealer
          is consulted before a decision is given to a Customer. The Dealer will
          support BMW GB in this regard and in the clarification of any possible
          questions. BMW GB will counsel and advise the Dealer in a suitable
          manner of the appropriate correspondence or action to be undertaken.

          Provision will be made for a service goodwill budget under the control
          of an appropriate manager to allow for policy adjustments to be made
          to further customer goodwill and retention.

     (iii) Vehicle History and Customer Follow Up File

          In order that the required customer contacts may be maintained it is
          prescribed that the vehicle history and Customer follow up file, in
          the form specified by BMW GB, will be set up, maintained and evaluated
          by an employee of the Dealer responsible therefor.

     (iv) Customer Service Promotion

          The Dealer will carry out all suitable actions to promote Customer
          retention including providing the highest level of service and
          ensuring that the Customer is aware of service available from the
          Dealer, BMW GB and the Manufacturer.

     (v)  Co-operation Between BMW GB and the Dealer

          The BMW GB Aftersales Department is the contact point for all service
          questions between BMW GB and the Dealer. This department will always
          advise and assist the Dealer appropriately.

8.   BMW Service Representatives

     (i)  Task of the Regional Manager

          The regional manager of BMW GB will give advice and support to the
          Dealer in all technical, organisational and administrative customer
          service questions

     (ii) Co-operation with the Dealer

          To facilitate a smooth service operation the Dealer will comply with
          all reasonable instructions given in the name of BMW GB through the
          regional manager.

                                      -38-
<PAGE>

                                 SIXTH SCHEDULE

                           CORPORATE IDENTITY DETAILS

BMW is one of the world's outstanding motor vehicle manufacturers and enjoys the
highest reputation in the eyes of its customers, competitors and the public at
large. It is essential that the high standards established in the BMW Identity
Programme are maintained at all times.

This Schedule sets out the requirements relating to the appearance and functions
of the Dealer to ensure that these standards are maintained.

1.   BMW Identity

     (i)  The Dealer will subject to statutory and any other necessary consents
          provide complete exterior corporate identity of the building, in
          accordance with the BMW Identity Programme issued by BMW GB as updated
          from time to time. At all times the highest standards of repair and
          decoration must be in evidence.

     (ii) A showroom will be provided for the display of BMW Vehicles, and new
          cars of other makes may only be displayed in the same sales premises
          if the Dealer has obtained any consents that it is required to obtain
          from BMW GB.

     (iii) The Dealer will provide interior facilities to the requirements of
          the BMW Corporate Identity Programme. This will include the provision
          of a customer contact area in the Dealer's showroom or in a separate
          area if provision in the showroom is agreed to be impractical. This
          customer contact area will include customer reception, service
          reception, parts boutique and retail counter, and customer waiting
          area, including cloakroom facilities. Decorative finishes and
          materials will comply with the BMW Corporate Identity Programme as
          specified by BMW GB from time to time.

     (iv) The Dealer will have BMW Stationery as advised by BMW GB for both
          internal and external documentation.

2.   Customer Facilities

     Unless otherwise agreed by BMW GB the Dealer will provide an adequate
     signed parking area, lined out, for its Customers and visitors.

3.   Dealership Vehicles

     Delivery and other commercial vehicles should be painted in accordance with
     the guidelines provided in the BMW Identity Programme. All vehicles will be
     maintained in a condition which will support the prestigious image of the
     BMW marque.

4.   Architectural Advice

     BMW GB will give or arrange to be provided advice to the Dealer in respect
     of the selection of a suitable site, the preparation of building plans and
     proposals and the equipping of the Dealer's business premises.

                                      -39-
<PAGE>

                                   SCHEDULE 7

                                  THE TERRITORY

Dealer Code:

Dealer Name:

Signed by XXXXX
          ---------------------------
for and on behalf of BMW (GB) Limited

Signed by XXXXX
          ---------------------------
for and on behalf of the Dealer

Dated:

                                      -40-
<PAGE>

                                 EIGHTH SCHEDULE

                              DETAILS OF THE DEALER

Dealer name         :
Trading as          : SYTNER
Registered office   : WOODCOTE HOUSE
                      HARCOURT WAY
                      MERIDIAN
Authorised Premises :
Type of organisation: Private limited company

<TABLE>
<CAPTION>
SHAREHOLDER        OWNERSHIP   PERCENTAGE
-----------        ---------   ----------
<S>                <C>         <C>
SYTNER GROUP LTD                   100
</TABLE>

<TABLE>
<CAPTION>
                                                    THE DEALER'S
                              THE DEALER           PARENT COMPANY
                         --------------------   --------------------
<S>                      <C>                    <C>
Authorised s/capital :
Issued share capital :
Date of incorporation:
Commenced trading    :
Banker               :
</TABLE>

<TABLE>
<CAPTION>
OTHER DEALERSHIPS                       DATE    CATEGORY
-----------------                    ---------  --------
<S>                                  <C>        <C>
KEY PERSONNEL
Dealer Principal   :
Managing Director  :
Sales Director     :
Service Director   :
Parts Director     :
Accountant         :
Company Secretary  :
General Manager    :
Sales Manager      :
Service Manager    :
Parts Manager      :
Commencement date of this Agreement :
Date of this Schedule               :
</TABLE>

                                      -41-
<PAGE>

SIGNED BY                               ) XXXXX
for and on behalf
of BMW (GB) LIMITED                     ) XXXXX
in the presence of:                     )

SIGNED BY                               ) XXXXX
for and on behalf of THE DEALER in the  )
presence of:                            )

XXXXX

                                      -42-<PAGE>

                                                                    Exhibit 10.8

                                      This

                              DISTRIBUTOR AGREEMENT

                               ("this Agreement")

                                  is made as of

                               OCTOBER 31ST, 2006

                                 by and between

                                   SMART GMBH,
a limited liability company organized and existing under the laws of the Federal
Republic of Germany, having its principal place of business at Leibnizstrasse 2,
                            71032 Boblingen, Germany

                                 ("SMART GMBH")

                                       and

                           SMART USA DISTRIBUTOR LLC,
a limited liability company organized and existing under the laws of Delaware,
having its principal place of business at 2555 Telegraph Road, Bloomfield Hills,
                                 Michigan 48302

                                ("DISTRIBUTOR").

      smart gmbh and DISTRIBUTOR are referred to Individually as "Party" and
                           collectively as "Parties".

                                                                    Page 1 of 86

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
ARTICLE 1  APPOINTMENT OF DISTRIBUTOR AND RIGHTS OF DISTRIBUTION..........     4
   1.1     Appointment of DISTRIBUTOR.....................................     4
   1.2     Limitation on Appointment......................................     4
   1.3     Retained Rights................................................     4
   1.4     Related Activities.............................................     5

ARTICLE 2  CONTRACT GOODS ................................................     5

ARTICLE 3  CONTRACT TERRITORY.............................................     6
   3.1     Contract Territory.............................................     6
   3.2     Activities Outside of the Contract Territory...................     6

ARTICLE 4  TARGET AGREEMENTS..............................................     6
   4.1     Sales Period...................................................     6
   4.2     Objectives.....................................................     6
   4.3     Minimum Sales Volume, Minimum Objectives.......................     7

ARTICLE 5  SALES AND SERVICE ACTIVITIES...................................     7
   5.1     Sales and Service Organization.................................     7
   5.2     smart Dealership Standards.....................................     7
   5.3     Authorized Resellers...........................................     8
   5.4     Facilities.....................................................     9
   5.5     Business Systems...............................................     9
   5.6     Management Personnel...........................................    11
   5.7     Training.......................................................    11

ARTICLE 6  SERVICE AND WARRANTY...........................................    12
   6.1     Service of Contract Goods......................................    12
   6.2     Authorized Reseller's Warranty.................................    12
   6.3     Distributor's Warranty.........................................    13
   6.4     Alteration and Equipment Installation..........................    14
   6.5     Parts..........................................................    14
   6.6     Technical Publications.........................................    14

ARTICLE 7  PROMOTION, ADVERTISING AND SIGNAGE.............................    14
   7.1     Promotion and Advertising......................................    14
   7.2     Signage........................................................    15

ARTICLE 8  ORDERS, PRICING AND PAYMENT....................................    16
   8.1     Orders.........................................................    16
   8.2     Pricing and Payment............................................    17

ARTICLE 9  LIABILITY AND INDEMNIFICATION..................................    17
   9.1     Limitation of Liability........................................    17
   9.2     Product Liability..............................................    18
   9.3     Force Majeure..................................................    19

ARTICLE 10 DESIGNATION AND MARKS..........................................    20
   10.1    Designation....................................................    20
   10.2    Use of smart Marks.............................................    20
   10.3    Company Name...................................................    20
</TABLE>

                                                                    Page 2 of 86

<PAGE>

<TABLE>
<S>                                                                          <C>
   10.4    Term of Use....................................................    21

ARTICLE 11 STATUS AND OWNERSHIP OF DISTRIBUTOR............................    21
   11.1    Status of DISTRIBUTOR..........................................    21
   11.2    DISTRIBUTOR'S Authority and Ownership..........................    21

ARTICLE 12 FINANCIAL STRUCTURE, BOOKS, RECORDS AND ACCOUNTS, STATEMENTS
           AND AUDIT......................................................    22
   12.1    Financial Structure, Books, Records and Accounts and
           Statements.....................................................    22
   12.1    Audit..........................................................    22

ARTICLE 13 OTHER OBLIGATIONS OF DISTRIBUTOR...............................    23
   13.1    Deal Information and Assistance................................    23
   13.2    Customer Data...............................................       23
   13.3    Customer Satisfaction Policies.................................    23
   13.4    Other Goods....................................................    24
   13.5    Compliance with Laws...........................................    24
   13.6    Execution of Related Agreements................................    26
   13.7    Emissions Credits..............................................    27

ARTICLE 14 TERM AND TERMINATION...........................................    27
   14.1    Term of this Agreement.........................................    27
   14.2    Termination with Immediate Effect..............................    28
   14.3    Notification...................................................    30
   14.4    Rights and Obligations on Termination..........................    30

ARTICLE 15 GENERAL PROVISIONS.............................................    32
   15.1    Payments to DISTRIBUTOR........................................    32
   15.2    Entire Agreement, Modification, Consent, Waiver, Rights and
           Assignment.....................................................    32
   15.3    Registration...................................................    33
   15.4    Confidential Information.......................................    33
   15.5    Counterparts and Photocopies...................................    33
   15.6    Interpretation and Discrepancy with Other Documents............    34
   15.7    Severability...................................................    34

ARTICLE 16 NOTICES........................................................    34

ARTICLE 17 GOVERNING LAW AND DISPUTE RESOLUTION...........................    35

ARTICLE 18 PLACE OF PERFORMANCE...........................................    35

ARTICLE 19 SIGNATURE......................................................    35
</TABLE>

ANNEXES:

Annex 1    Vehicles
Annex 2    Contract Specifications
Annex 3.1  Target Agreement
Annex 3.2  Parts
Annex 4    Format Types, Corporate Identity (CI) and Standards
Annex 5    Distributor's Warranty
Annex 6    Sales Conditions
Annex 7    Trade and Service Marks Licensing Clauses
Annex 8    Allocation of Functions
Annex 9    TREAD Act Information
Annex 10   Field Actions, Service Campaigns and Recalls

                                                                    Page 3 of 86
<PAGE>

ARTICLE 1 - APPOINTMENT OF DISTRIBUTOR AND RIGHTS OF DISTRIBUTION

1.1  APPOINTMENT OF DISTRIBUTOR

smart gmbh hereby appoints DISTRIBUTOR and DISTRIBUTOR hereby accepts, subject
to the terms and conditions of this Agreement, to be the exclusive distributor
for the sale and service of Contract Goods (as defined below) in the Contract
Territory (as defined below).

1.2  LIMITATION ON APPOINTMENT

(1)  DISTRIBUTOR shall sell Contract Goods only to:

     (i)  its Authorized Resellers (as defined below); and

     (ii) end users of Contract Goods,

     whose place of residence or business domicile is within the Contract
     Territory.

(2)  DISTRIBUTOR shall not sell any Contract Goods unless those Contract Goods
     are purchased under this Agreement or otherwise with smart gmbh's consent,
     nor shall DISTRIBUTOR acquire or assist others in acquiring Contract Goods
     from any source other than smart gmbh.

1.3  RETAINED RIGHTS

     (1)  smart gmbh may be required by certain of its multinational fleet
          customers or certain multinational fleet customers of a
          DaimlerChrysler Group Company, while smart gmbh is a DaimlerChrysler
          Group Company, to enter into agreements with customers [other than a
          DaimlerChrysler Group Company). Prior to doing SD, smart gmbh shall
          promptly inform DISTRIBUTOR and, thereafter, smart gmbh and
          DISTRIBUTOR shall consult to respond, if possible, to the needs of the
          customer and agree in advance as to the terms and conditions under
          which the customer will acquire the Vehicles from DISTRIBUTOR and its
          Authorized Resellers for the customer's operation within the Contract
          Territory. If DISTRIBUTOR and smart gmbh fail to agree upon such terms
          and conditions, smart gmbh may then require DISTRIBUTOR, and
          DISTRIBUTOR is obliged to implement the sale, but only in accordance
          with the following conditions:

          A. smart gmbh will ensure that DISTRIBUTOR will in any such case
          retain a margin of at least *% of Vehicle's MSRP (as defined below)
          to cover DISTRIBUTOR'S expenses relating to such meal (for example
          customer information, test drives, invoicing, vehicle arrangement, pre
          delivery inspection, delivery).

          B. smart gmbh shall ensure that DISTRIBUTOR and its Authorized
          Reseller receive payment from the fleet customer for the sold Vehicles
          or another mutually agreeable solution.

          C. The maximum number of Vehicles which smart gmbh may directly or
          indirectly offer and sell to multinational fleet customers pursuant to
          this Article 1.3 is agreed to be:

<TABLE>
<CAPTION>
Time Frame                           Volume Limitation
----------------------------------   --------------------------------------
<S>                                  <C>
January 1,2008 - December 31, 2009   *% on top of the mutually agreed to
                                     annual Vehicle planning volume for the
                                     calendar year

January 1,2010 - December 31, 2021   *% on top of the mutually agreed to
                                     annual Vehicle planning volume for the
                                     calendar year
</TABLE>

     (2)  Prior to any offer of any special condition to any DaimlerChrysler
          Group Company's employees, which differ from the market conditions
          (the conditions offered to the general public), DISTRIBUTOR shall
          obtain smart gmbh's written approval if smart gmbh is at that point in
          time a DaimlerChrysler Group Company.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                    Page 4 of 86

<PAGE>

     (3)  Vehicles for the use of a DaimlerChrysler Group Company (e.g. as
          Company cars for corporate fleet, with or without registration and as
          management cars) should be ordered via DISTRIBUTOR. In that case the
          Parties will agree in advance on a processing fee and the applying
          conditions during the yearly negotiation process. If the Parties
          should not agree, smart gmbh may, if smart gmbh is at that point in
          time a DaimlerChrysler Group Company, transfer Vehicles in the
          Contract Territory to any DaimlerChrysler Group Company, whereas
          DISTRIBUTOR, shall be involved and will be reimbursed for incurred
          costs (max. *% basis Vehicle's MSRP as defined in Clause 1.3(1)(A).

1.4  RELATED ACTIVITIES

(1)  With respect to financing and leasing of Contract Goods, DISTRIBUTOR and
     its Authorized Resellers shall, albeit not exclusively, offer the range of
     services provided by any DaimlerChrysler Group Company active in the field
     of financing or leasing provided such services can be lawfully offered.

(2)  DISTRIBUTOR and its Authorized Resellers shall offer and process service
     products provided by any DaimlerChrysler Group Company in accordance with
     the relevant guidelines.

ARTICLE 2 - CONTRACT GOODS

(1)  Contract Goods are:

     (i)  completely built-up new motor vehicles (including chassis)
          manufactured by or under license of smart gmbh or any DaimlerChrysler
          Group Company, as identified in ANNEX 1 ("Vehicles") and in the
          versions intended for the Contract Territory, as offered to
          DISTRIBUTOR, from time to time, hereunder; and

     (ii) new genuine parts, accessories for installation on or attachment to
          Vehicles, components, aggregates, assemblies, as well as genuine
          remanufactured parts, components, aggregates and assemblies, which are
          supplied by smart gmbh, a DaimlerChrysler Group Company or authorized
          licensee ("Parts").

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                    Page 5 of 86

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(2)  Successor and supplementary models within existing model series will become
     Contract Goods upon their official launching in the Contract Territory with
     the consent of smart gmbh.

ARTICLE 3 - CONTRACT TERRITORY

3.1  CONTRACT TERRITORY

The Contract Territory is as set forth in ANNEX 2, under the heading "Contract
Territory".

3.2  ACTIVITIES OUTSIDE OF THE CONTRACT TERRITORY

DISTRIBUTOR and its Authorized Resellers shall not. directly or indirectly,
outside of the Contract Territory:

(i)  maintain sales or distribution branches or depots for Contract Goods;

(ii) solicit customers for Contract Goods in any manner and, in particular,
     through the internet, it being recognized that prospective customers
     located outside of the Contract Territory may access DISTRIBUTOR'S and/or
     its Authorized Resellers, Contract Territory-based internet sites and such
     accessing shell not be deemed to be a violation of this Article; or

(iii) appoint sub-distributors, dealers, outlets or workshops to sell,
     distribute or service Contract Goods.

ARTICLE 4 - TARGET AGREEMENTS

4.1 SALES PERIOD

(1)  Prior to each Sales Period, the Parties shall agree upon quantitative
     and/or qualitative objectives to be reached by DISTRIBUTOR and its
     Authorized Resellers in a Target Agreement. The Target Agreement for the
     first Sales Period is set forth in ANNEX 3.1.

(2)  "Sales Period" means the calendar year or, for this Agreement's first and
     last years, the partial calendar year during which this Agreement is in
     effect,

4.2  OBJECTIVES

(1)  The quantitative objectives may Include, but are not limited to, the
     following:

     (i)  a minimum or a specific number of Vehicles to be sold by DISTRIBUTOR
          and its Authorized Resellers to end users in the Contract Territory;

     (ii) a minimum or a specific market share in defined vehicle segments in
          the Contract Territory;

     (iii) a minimum or a specific turnover of Parts;

     (iv) a specific inventory of Contract Goods [although, in any case,
          DISTRIBUTOR and its Authorized Resellers shall keep a balanced
          inventory of Contract Goods in quantity and assortment sufficient to
          meet customer demand in the Contract Territory); and

     (v)  a specific number of demonstration vehicles (although, in any case,
          DISTRIBUTOR and its Authorized Resellers shall keep in stock such
          number of demonstration Vehicles appropriate for the volume of
          business).

(2)  The qualitative objectives may include, but are not limited to, the
     following:

     (i)  measures which ensure the achievement of smart Dealership Standards
          (as defined below) by DISTRIBUTOR'S Authorized Resellers as well as
          smart gmbh's other requirements; and

     (ii) the implementation of organizational structures, new facilities or
          processes,

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4.3 MINIMUM SALES VOLUME, MINIMUM OBJECTIVES

(1)  DISTRIBUTOR is obliged to take delivery of and pay for the yearly agreed
     volume of Contract Goods as set forth in ANNEX 3.1.

(2)  The Minimum Sales Volume is, for each category of Contract Goods, as the
     case may be, a number of Vehicles that DISTRIBUTOR and its Authorized
     Resellers must sell, as a minimum, to end-users in the Contract Territory,
     or a turnover of Parts, that DISTRIBUTOR and its Authorized Resellers must
     make at a minimum.

ARTICLE 5 - SALES AND SERVICE ACTIVITIES

5.1  SALES AND SERVICE ORGANIZATION

(1)  DISTRIBUTOR shall directly and/or through Authorized Resellers develop and
     maintain a sales and service network that in terms of quality and capacity
     ensures the balanced and thorough distribution of Contract Goods, the
     supply of the market demand for Contract Goods and expert service that
     enhances the high-quality image, reputation and acceptability of Contract
     Goods. smart gmbh assumes that the sales and service network set up by the
     DISTRIBUTOR will consist of United Auto Group, Inc. ("UAG") dealers and of
     Penske Automotive dealers and others. DISTRIBUTOR shall consult with smart
     gmbh prior to establishing or adjusting its sales and service network.

     DISTRIBUTOR will ensure an initial investment by each Authorized Reseller
     of approximate * US$ for the set up of all sales and service facilities
     (including IT systems, tools and all necessary equipment), for the purchase
     of corporate identity and signage, and for carrying out initial staff
     training (sales, service, management personnel), if a higher investment
     becomes necessary the Parties shall agree thereon prior to this investment.

(2)  "Authorized Resellers" means all persons appointed by DISTRIBUTOR in
     accordance with this Agreement to maintain sales and/or service facilities
     in the Contract Territory for any Contract Goods.

5.2  SMART DEALERSHIP STANDARDS

(1)  DISTRIBUTOR and its Authorized Resellers shall strive to comply with those
     standards as may be from lime to time implemented and amended or updated by
     smart gmbh ("smart Dealership Standards"). The current smart Dealership
     Standards are set forth in ANNEX 4. The implementation or any amendment or
     update of smart Dealership Standards requires one year's notice to
     DISTRIBUTOR.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                    Page 7 of 86

<PAGE>

(2)  In any event, DISTRIBUTOR and its Authorized Resellers are obliged to
     comply with those of the smart Dealership Standards that are identified by
     smart gmbh to be binding on DISTRIBUTOR and/or its Authorized Resellers
     ("smart Dealership Must Standards"). The fulfillment of all smart
     Dealership Must Standards by DISTRIBUTOR and its Authorized Resellers is a
     condition precedent for DISTRIBUTOR's appointment as a distributor of
     Contract Goods in the Contract Territory, and their continued fulfillment
     is a condition for this Agreement being upheld. Likewise, the fulfillment
     of all smart Dealership Must Standards by each of DISTRIBUTOR's Authorized
     Resellers must be a condition precedent for the relevant Authorized
     Reseller's appointment by DISTRIBUTOR, and their continued fulfillment must
     be a condition for the relevant agreement being upheld.

(3)  In addition, DISTRIBUTOR and its Authorized Resellers shall comply with
     smart gmbh's requirements or such other manuals, guidelines or materials
     as may be from time to time implemented and amended or updated by smart
     gmbh.

5.3  AUTHORIZED RESELLERS

(1)  DISTRIBUTOR's Authorized Resellers must:

     (i)  be duly organized, validly existing and in good standing under
          Applicable Laws, and have, now and forthwith, full authority and all
          permits, authorizations and licenses necessary or advisable to enter
          into or perform their obligations under the agreement with
          DISTRIBUTOR;

     (ii) show a sound financial structure with a working capital level and
          financing capability that satisfy their operating requirements. In
          particular, the working capital level and financing capability must be
          sufficient for meeting the smart Dealership Standards and smart
          gmbh's requirements, and must be acceptable to smart gmbh;

     (iii) not have been subject to any voluntary or involuntary bankruptcy or
          insolvency proceedings;

     (iv) not engage in or be charged with practices that constitute an offense
          under any anti-bribery, export control, competition, tax, stock
          exchange or corporate governance legislation or that jeopardize smart
          gmbh's good name and goodwill, or act in a manner which substantially
          and adversely affects the reputation, distribution and promotion of
          smart gmbh's or, for as long as smart gmbh is a DaimlerChrysler Group
          Company, any DaimlerChrysler Group Company's goods and services; and

     (v)  not be charged with or convicted of any offense punishable by
          imprisonment for more than one year, or a crime involving dishonesty,
          false statement or theft.

(2)  Prior to appointing an Authorized Reseller, DISTRIBUTOR shall:

     (i)  provide to smart gmbh all information relevant to the financial
          condition, management, ownership, business practices and corporate
          reputation and to such person's qualifications and ability to perform
          as an Authorized Reseller;

     (ii) obtain the Authorized Reseller's representation that it meets all
          conditions set forth in Clause 5.3 (1);

     (iii) obtain smart gmbh's confirmation, acting reasonably, as to the
          acceptability of such person; and

     (iv) obtain smart gmbh's approval of the agreement between DISTRIBUTOR and
          the Authorized Reseller including the smart Dealership Standards and
          the Authorized Reseller's margin.

     smart gmbh may, in its sole discretion, exercised reasonably, reject any
     proposed appointment. Final decision of Authorized Reseller appointment is
     with DISTRIBUTOR.

(3)  DISTRIBUTOR shall have a written agreement with each Authorized Reseller
     and such agreement must be consistent with this Agreement. In particular,
     such agreement:

     (i)  must oblige the Authorized Reseller to observe and perform the duties
          and obligations set forth in this Agreement (in particular the smart
          Dealership Must Standards) as far as any may be applicable to the
          Authorized Reseller; and

     (ii) must not grant to the Authorized Reseller rights that go beyond those
          which smart gmbh has granted to DISTRIBUTOR, thus restricting or
          jeopardizing any right or position of smart

                                                                    Page 8 of 86

<PAGE>

          gmbh or excluding or impeding the enforcement of any such right or
          position or damaging or jeopardizing the image of smart gmbh or, as
          long as smart gmbh is a DaimlerChrysler Group Company, any
          DaimlerChrysler Group Company or Contract Goods, unless so required by
          Applicable Law.

(4)  Upon the appointment of an Authorized Reseller, DISTRIBUTOR shall provide
     smart gmbh without delay with a copy of that agreement and, if so requested
     by smart gmbh, with a certified translation of that agreement.

(5)  Upon smart gmbh's request from time to time, DISTRIBUTOR shall provide
     smart gmbh without delay with a copy of all relevant agreements with any or
     all of its Authorized Resellers and, if so requested by smart gmbh, with
     certified translations thereof, and all information relevant to the
     financial condition, management, ownership, business practices and
     corporate reputation of any or all of its Authorized Resellers. DISTRIBUTOR
     shall at all times promptly comply with smart gmbh's instructions to
     modify or alter all or any of the agreements with its Authorized Resellers
     in order to comply with Clause 5.2 (3) above, or to enforce any right under
     those agreements.

(6)  DISTRIBUTOR shall:

     (i)  provide its Authorized Resellers with appropriate supervision and
          training;

     (ii) actively monitor the performance by each Authorized Reseller of its
          agreements with DISTRIBUTOR and enforce each Authorized Reseller's
          obligations under such agreements; and

     (iii) use its best efforts to put into place and maintain, and to assist
          its Authorized Resellers in putting into place and maintaining,
          effective inventory and retail sale financing programs.

5.4  FACILITIES

(1)  DISTRIBUTOR shall directly and/or through its Authorized Resellers maintain
     offices, sales and service facilities (including vehicle and parts storage
     and display facilities) sufficient to represent Contract Goods
     appropriately in the Contract Territory consistent with the Parties' Target
     Agreement and enhance the image of Contract Goods.

(2)  Each retail sales outlet, showroom and service facility must:

     (i)  be at a location approved by smart gmbh and comply with applicable
          smart Dealership Must Standards and smart gmbh's requirements; and

     (ii) unless otherwise agreed to by smart gmbh, be continuously used for the
          sale or servicing of Contract Goods during the term of the agreement
          with the Authorized Reseller.

5.5  BUSINESS SYSTEMS

(1)  DISTRIBUTOR and its Authorized Resellers shall maintain accounting, order,
     inventory control, and warranty claim processing systems and records in a
     manner acceptable to smart gmbh. DISTRIBUTOR and its Authorized Resellers
     (through DISTRIBUTOR) shall provide to smart gmbh business management
     reports at the times and in the form smart gmbh requests, including but not
     limited to sales, service, and warranty claims reports, financial reports
     and operating statements, Parts sales and stock reports as well as customer
     databases and information. Unless otherwise instructed by smart gmbh.
     DISTRIBUTOR and its Authorized Resellers shall retain all books and records
     for at least six years or such longer period as may be required under
     Applicable Law.

(2)  DISTRIBUTOR and its Authorized Resellers shall maintain an electronic data
     storage, transmission and communication system ("Systems") in the manner
     and form smart gmbh recommends from time to time, smart gmbh may provide
     DISTRIBUTOR and its Authorized Resellers with system equipment, hardware
     and/or software or may require DISTRIBUTOR and its Authorized Resellers to
     purchase or lease such equipment, hardware and/or software. If smart gmbh
     provides DISTRIBUTOR and its Authorized Resellers with equipment, hardware
     or software, DISTRIBUTOR and its Authorized Resellers shall:

                                                                    Page 9 of 86

<PAGE>

     (i)  safeguard such equipment, hardware or software, and will not allow its
          use for any purpose other than that authorized by smart gmbh;

     (ii) not copy, disassemble, transmit, modify, use or take any action (or
          allow any other person to do any of these things) that may violate any
          license for the software (or firmware contained in the hardware) that
          smart gmbh may have been granted or which smart gmbh may grant to
          DISTRIBUTOR and its Authorized Resellers; and

     (iii) not transfer or allow the transfer of the equipment, hardware or
          software to anyone without the consent of smart gmbh.

(3)  DISTRIBUTOR and its Authorized Resellers shall observe the rules, terms and
     conditions relating to the use of Systems and related equipment, hardware
     and software from time to time implemented by smart gmbh. All
     communications, including orders for Contract Goods, claims, and notices
     submitted through the Systems using DISTRIBUTOR's numbers, codes and
     passwords are valid and legally binding upon DISTRIBUTOR, and all such
     orders, notices or communications are valid and legally binding orders,
     notices and communications, as the case may be, as if DISTRIBUTOR had
     submitted such order, notice or communication to smart gmbh in writing, and
     is deemed to be "signed" or "sealed" by DISTRIBUTOR as if in writing and
     signed or sealed by or on behalf of DISTRIBUTOR by hand, for purposes of
     any law requiring an order for goods or services, notices or communications
     to be in writing and to be signed or sealed. All uses of identification
     numbers, codes and passwords for the Systems shall be presumed to be
     authorized by DISTRIBUTOR until DISTRIBUTOR notifies smart gmbh that the
     number, code or password a compromised, smart gmbh will cancel and will
     issue a new password to DISTRIBUTOR whenever DISTRIBUTOR indicates the
     password is compromised, smart gmbh is not liable for any delays or lack of
     access to any System arising from such cancellation.

(4)  DISTRIBUTOR shall maintain electronic data and communication systems
     necessary for compliance with the Transportation Recall, Enhancement,
     Accountability and Documentation (TREAD) Act of 2000 (The "TREAD Act"
     (which term shall include any successor Federal statute)) and all
     regulations implementing the TREAD Act, DISTRIBUTOR shall establish and
     maintain in a manner acceptable to smart gmbh systems capable of
     communicating with the electronic data and communication systems maintained
     by smart gmbh and with those established by the National Highway Traffic
     Safely Administration (or any successor government agency) for submissions
     required of DISTRIBUTOR as an importer (and, thus, considered the
     manufacturer) or distributor of vehicles in the US, pursuant to the TREAD
     Act.

     To the extent information necessary for submission under the TREAD Act is
     in the exclusive control of smart gmbh or another DaimlerChrysler Group
     Company, smart gmbh shall make such information available to DISTRIBUTOR
     through smart gmbh's existing electronic data and communication systems.
     DISTRIBUTOR shall be responsible for establishing connection to smart
     gmbh's electronic data and communication systems through a single smart
     gmbh source sufficient to ensure receipt of all information required to be
     submitted under the TREAD Act. The systems must be capable of receiving all
     communications relating to the information listed in the ANNEX 9.

(5)  DISTRIBUTOR shall establish and maintain in a manner acceptable to smart
     gmbh systems sufficient to ensure full compliance by DISTRIBUTOR with all
     record-keeping and administrative requirements of vehicle safety and
     emissions laws and regulations applicable to DISTRIBUTOR as an importer or
     distributor of vehicles in the United States, including but not limited to
     systems necessary to track warranty claims for emissions and safety
     compliance and respond to all inquiries from any government entity that
     oversees and/or implements those laws and regulations.

(6)  DISTRIBUTOR shall establish and at all times maintain electronic data and
     communication systems in a manner acceptable to smart gmbh capable of
     receiving information from smart gmbh in any way relating to field actions,
     service campaigns or recalls relating to the Contract Goods, as set forth
     in ANNEX 10.

                                                                   Page 10 of 86

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5.6  MANAGEMENT PERSONNEL

(1)  DISTRIBUTOR and its Authorized Resellers shall employ qualified personnel,
     including a General Manager, a Finance Manager, a Sales Manager, a Parts
     Manager and a Service Manager. These positions may be combined with the
     prior consent of smart gmbh. Such employees of DISTRIBUTOR and its
     Authorized Resellers shall not, without the prior consent of smart gmbh,
     engage or participate in operating, selling or servicing, as the case may
     be, of any brand of vehicles or parts other than Contract Goods.

(2)  DISTRIBUTOR represents and warrants that each individual listed in ANNEX 2,
     under the heading "Management and Signatory Authority", holds the position
     indicated and has authority to execute agreements and other documents
     relating to this Agreement for DISTRIBUTOR, either jointly or severally, as
     indicated. DISTRIBUTOR authorizes smart gmbh to rely on any writing signed
     by these individuals, either jointly or severally, as indicated.

(3)  DISTRIBUTOR represents and warrants that each individual designated as key
     personnel in ANNEX 2, under the heading "Key Personnel", will participate
     actively, substantially and continuously in DISTRIBUTOR's business
     operations relating to this Agreement and that DISTRIBUTOR will notify
     smart gmbh immediately if any key personnel stops participating actively,
     substantially and continuously in such operations, obtain smart gmbh's
     prior approval of any replacement for such key personnel, and appoint a
     replacement approved by smart gmbh within reasonable time.

5.7  TRAINING

DISTRIBUTOR shall keep its own personnel and its Authorized Resellers advised of
all information received from smart gmbh. Furthermore, DISTRIBUTOR and its
Authorized Resellers shall participate in sales, service, parts, technical,
business systems and other training courses smart gmbh offers or organizes from
time to time as smart gmbh may direct. DISTRIBUTOR and its Authorized Resellers
shall pay the direct costs of such training as may be assessed by smart gmbh,
and the indirect costs of such training that smart gmbh may reasonably incur
(including travel expenses) for such training.

                                                                   Page 11 of 86

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ARTICLE 6 - SERVICE AND WARRANTY

6.1  SERVICE OR CONTRACT GOODS

(1)  DISTRIBUTOR and its Authorized Resellers shall provide service (servicing,
     maintenance and repair work) for all Contract Goods including versions of
     equal goods not intended for safe in the Contract Territory. The preceding
     sentence shall apply in each case, regardless of whether the goods are in
     the Contract Territory temporarily or permanently, or where or by whom the
     goods were acquired, or whether they are new or used. All customers and
     their Vehicles shall be treated with equal care. The service must conform
     to the applicable smart Dealership Must Standards as well as smart gmbh's
     requirements and other manuals, guidelines or materials.

(2)  DISTRIBUTOR shall establish a Service Coordination Center in conformity
     with the requirements of smart gmbh, if so required by smart gmbh. Such
     Service Coordination Center will be responsible for coordinating service
     related tasks, implementing service related smart Dealership Standards as
     well as smart gmbh's requirements and such other tasks as may be from time
     to time assigned by smart gmbh.

(3)  DISTRIBUTOR and its Authorized Resellers shall acquire and maintain
     equipment and tools required for properly servicing Contract Goods as
     determined by smart gmbh.

6.2  AUTHORIZED RESELLER'S WARRANTY

(1)  DISTRIBUTOR and its Authorized Resellers shall at their respective facility
     locations perform warranty work for Contract Goods including versions of
     equal goods not intended for sale in the Contract Territory. The preceding
     sentence shall apply in each case, regardless of whether the goods are in
     the Contract Territory temporarily or permanently, or where or by whom the
     goods were acquired.

(2)  Warranty operations and processes shall be in accordance with the
     DaimlerChrysler Warranty Procedure Manual or other manual established by
     smart gmbh ("Warranty Manual") in effect at the time that a warranty case
     occurs. The Warranty Manual will be made available for DISTRIBUTOR online.
     smart gmbh may at any time, with immediate effect, modify the Warranty
     Manual or implement new procedures for approving, verifying, and
     controlling the quality of warranty service and for warranty claim
     preparation. DISTRIBUTOR and its Authorized Resellers shall allow smart
     gmbh access to their respective facilities to observe the performance or
     administration of warranty service.

(3)  Warranty obligations shall follow the warranty terms provided by smart gmbh
     for the Contract Territory. If DISTRIBUTOR or its Authorized Resellers are
     obliged by Applicable Law to provide more extensive warranty, they shall
     notify smart gmbh. If DISTRIBUTOR or its Authorized Resellers feel that
     more extensive warranty should be provided in the Contract Territory for
     other reasons, they shall only provide that warranty with smart gmbh's
     prior consent. Warranty obligations for equal goods purchased outside the
     Contract Territory shall follow the warranty terms that apply in the place
     of purchase outside the Contract Territory if DISTRIBUTOR is made aware of
     them in writing. In all of the cases referred to in this Clause (3), smart
     gmbh (or the DaimlerChrysler Group Company or licensee selling the goods)
     shall only be liable for the warranty coverage provided by it to the first
     purchaser.

(4)  DISTRIBUTOR shall ensure that all warranty claims are settled in accordance
     with the Warranty Manual and without delay. Depending on the technical
     requirements, warranty work shall consist either of replacement or repair,
     without any charge to the customer for labor, parts, freight and customs
     duty.

(5)  DISTRIBUTOR and its Authorized Resellers shall use only Parts for warranty
     work.

(6)  smart gmbh (or the DaimlerChrysler Group Company or the smart gmbh approved
     licensee selling the Contract Goods to DISTRIBUTOR) will reimburse
     DISTRIBUTOR for approved warranty

                                                                   Page 12 of 86
<PAGE>

     service required under this Agreement at the rates and time allowances
     smart gmbh establishes from time to time as defined in Annex 5.

(7)  DISTRIBUTOR shall submit defective parts within warranty or other claims
     for reimbursements no later than 30 days after date of repair to smart gmbh
     as determined in the process defined by smart gmbh in accordance with the
     procedures specified in the Warranty Manual and other materials in effect
     at the time of such submission.

(8)  The terms of Clauses(1) through (6) above apply with equal force to free
     servicing, goodwill repairs and vehicle recall activities paid for by smart
     gmbh in whole or In part.

(9)  If DISTRIBUTOR or its Authorized Resellers gain knowledge of any defect
     that may impair the safety of smart gmbh's products or that may otherwise
     be required to be notified by laws applicable to smart gmbh or any
     DaimlerChrysler Group Company, they shall immediately inform smart gmbh,
     irrespective of whether the defect occurred during or after expiration of
     the warranty period. The same shall apply to defects which are frequent or
     costly.

(10) DISTRIBUTOR shall implement a system for localization, blocking and
     registration of vehicles with definite defects in vehicles with VIN
     notified by smart gmbh, and for realization of rework measures.

(11) DISTRIBUTOR and its Authorized Resellers will conduct all field actions,
     service campaigns and recalls in a manner consistent with the policies and
     procedures established by smart gmbh from time to time, as set forth in
     ANNEX 10.

(12) Notwithstanding any other provision of this agreement, smart gmbh will not
     reimburse DISTRIBUTOR for any expenses related to field actions or recalls
     undertaken to address vehicle deficiencies, including any field actions or
     recalls initiated by DISTRIBUTOR to comply with safety or emissions laws
     and regulations, unless DISTRIBUTOR provides smart gmbh with prior written
     description of the intended action prior to communicating the action to
     customers or government agencies or otherwise initiating the field action
     or recall.

(13) DISTRIBUTOR and its Authorized Resellers shall not alter or modify any
     Contract Good without smart gmbh's prior written approval and then only in
     a manner smart gmbh authorizes, unless such authorization or modification
     has been ordered by an end user and concerns a particular Vehicle purchased
     by that end user, provided, that such alteration or modification shall not
     under any circumstances impair the roadworthiness, operating safety, or
     emissions compliance of the Vehicle. However, smart gmbh does not warrant
     or guarantee any alteration or modifications to, or the effect of such
     alterations or modifications on, Contract Goods.

6.3 DISTRIBUTOR'S WARRANTY

In addition to the warranty set forth in Article 6.2 above, DISTRIBUTOR shall
grant to customers a warranty fulfilling, as a minimum, the criteria defined in
ANNEX 5. In addition to the warranty, DISTRIBUTOR plans to offer a 24 hours/ 7
days Roadside Assistance Program to its Authorized Resellers' new Vehicles
retail customers. The terms of this Program will be provided by DISTRIBUTOR to
smart gmbh prior to the commencement of the Program and annually thereafter,
smart gmbh will reimburse DISTRIBUTOR for its accrued coats of the conduct of
the Program for the prior year in total up to a maximum of * US$ multiplied by
the number of Vehicles sold to an end-customer during that same prior year by
DISTRIBUTOR, DISTRIBUTOR's Authorized Resellers and by others as permitted by
Section 1.3 of this Agreement ("Formula Vehicles"). Such reimbursement shall
continue during this Agreement, including for accrued costs of the Program
during the last year of this Agreement. Should the DISTRIBUTOR's accrued costs
of the conduct of the Program for the year which are not reimbursable by smart
gmbh exceed * US$ multiplied by the number of the Formula Vehicles, the Parties
shall discuss and agree upon a new maximum amount during the period March 1st to
May 1st of the year or years following the year that such excess costs were
accrued by DISTRIBUTOR.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

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6.4 ALTERATION AND EQUIPMENT INSTALLATION

DISTRIBUTOR and its Authorized Resellers shall not alter or modify any Contract
Good without smart gmbh's prior written approval and then only in the manner
smart gmbh authorizes, unless such alteration or modification has been ordered
by an end user and concerns a particular Vehicle purchased by that end user,
provided, that such alteration or modification shall not under any circumstances
impair the roadworthiness, emissions compliance, as operating safety of the
Vehicle. However, smart gmbh does not warrant nor guarantee any alteration or
modification to or the effect of such alteration or modification on, Contract
Goods.

6.5 PARTS

DISTRIBUTOR and its Authorized Resellers shall only sell or use Parts in
repairing and maintaining Contract Goods or those approved by smart gmbh.

6.6 TECHNICAL PUBLICATIONS

(1)  DISTRIBUTOR and its Authorized Resellers shall each maintain on organized
     library of smart gmbh's technical service publications (including, without
     limitation, service and diagnostic manuals, service and recall bulletins
     and applicable labor time schedules) for Contract Goods as may be from time
     to time supplied by smart gmbh. DISTRIBUTOR and its Authorized Resellers
     shall at all times utilize all lawful methods to access those of smart
     gmbh's databases, electronic media information services and websites that
     have been opened for them. DISTRIBUTOR and its Authorized Resellers shall
     observe the rules, terms and conditions relating to the use of the Systems
     from time to time implemented by smart gmbh.

(2)  If DISTRIBUTOR or any of its Authorized Resellers undertakes to translate
     any of the publications into any language other than the language of the
     publications as provided by smart gmbh, the copyright therein is owned by
     smart gmbh (or other appropriate DaimlerChrysler Group Company) in its
     entirety. To the extent DISTRIBUTOR and its Authorized Resellers have any
     interest in that copyright, whether by means of the work of their employees
     in translating such publications or otherwise, DISTRIBUTOR shall (and shall
     cause its Authorized Resellers to) transfer to smart gmbh (or other
     appropriate DaimlerChrysler Group Company), without charge, fee or cost,
     all their respective rights, title and interest relating to any copyright
     rights they may acquire in the translation. All those translations must
     bear a valid copyright notice designating smart gmbh (or the appropriate
     DaimlerChrysler Group Company) as the copyright owner.

(3)  DISTRIBUTOR is responsible for ensuring that all publications conform to
     Applicable Law. If DISTRIBUTOR believes that any publication may not
     conform to Applicable Law, DISTRIBUTOR shall notify smart gmbh of the part
     that may not so conform and any proposed revisions. DISTRIBUTOR shall not
     make any revisions to any publication without the consent of smart gmbh.

ARTICLE 7- PROMOTION, ADVERTISING AND SIGNAGE

7.1 PROMOTION AND ADVERTISING

(1)  DISTRIBUTOR and its Authorized Resellers shall actively market Contract
     Goods (as well as used cars and other services) throughout the Contract
     Territory through advertising, promotion and other activities in order to
     fulfill the potential of the market and to ensure the continued growth,
     awareness and positive regard for Contract Goods.

(2)  DISTRIBUTOR's and its Authorized Resellers' marketing strategy and
     advertising and promotional materials, including their internet activities,
     must:

     (i)  be consistent with the applicable smart Dealership Must Standards as
          well as smart gmbh's brand representation and identification standards
          and smart gmbh's product claims (including attributes and
          performance); and

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     (ii) comply with smart gmbh's directives, standards and processes as may be
          issued by smart gmbh from time to time (including any standards from
          time to time set out in marketing standards manuals and product
          information bulletins).

(3)  Upon smart gmbh's request, DISTRIBUTOR shall submit, at least three months
     prior to the commencement of each Sales Period, its comprehensive
     advertising and marketing plan for each Sales Period to smart gmbh for its
     review and approval. DISTRIBUTOR shall provide smart gmbh with updates as
     from time to time requested by smart gmbh.

(4)  DISTRIBUTOR and its Authorized Resellers shall neither use, nor allow any
     person or entity it controls to use, any advertising or promotional
     materials that may injure smart gmbh's or any DaimlerChrysler Group
     Company's or a Contract Good's reputation or mislead the public. Upon smart
     gmbh's request, DISTRIBUTOR and its Authorized Resellers shall immediately
     stop advertising, promotion or other marketing activities - unless
     previously approved by smart gmbh - which (In the sole opinion of smart
     gmbh) do not comply with smart gmbh's guidelines or standards, are
     injurious to smart gmbh's or any DaimlerChrysler Group Company's business,
     or are likely to deceive the public, or violate any Applicable Law or
     regulation, DISTRIBUTOR and its Authorized Resellers are responsible for
     compliance with applicable laws and rules regulating marketing, advertising
     and promotional matters.

(5)  DISTRIBUTOR shall keep smart gmbh informed of all marketing, advertising
     and promotional activities implemented by DISTRIBUTOR and its Authorized
     Resellers as well as the results of such activities. DISTRIBUTOR agrees
     that smart gmbh may provide to other authorized members of the global
     DaimlerChrysler sales and service network, as an exchange of information,
     any marketing, advertising or promotional materials used by DISTRIBUTOR or
     its Authorized Resellers, subject to any Applicable Law or regulation
     governing privacy of consumers, confidentiality of information or other
     laws or regulations.

(6)  DISTRIBUTOR and its Authorized Resellers, upon smart gmbh's request, shall
     continuously coordinate and participate in:

     (i)  any dealer advertising program or association for any of the Vehicles;
          and

     (ii) any Parts merchandising programs.

(7)  DISTRIBUTOR and its Authorized Resellers shall not distribute or sell
     merchandise (other than Contract Goods) or promotional materials bearing or
     using in any way any smart Mark or otherwise relating in any way to
     Contract Goods or any DaimlerChrysler Group Company except from a physical
     dealership or other physical location of DISTRIBUTOR or any Authorized
     Reseller within the Contract Territory. The foregoing prohibits, among
     other matters, DISTRIBUTOR and any Authorized Reseller from distributing or
     selling such merchandise or promotional materials over or using the
     internet for such purposes.

7.2 SIGNAGE

(1)  On terms approved by smart gmbh and at DISTRIBUTOR's fir its Authorized
     Reseller's expense, DISTRIBUTOR and its Authorized Resellers shall display
     at all times appropriate signs and fascia to identify its facility as an
     authorized facility for Contract Goods. These signs and fascia must comply
     with the applicable smart Dealership Must Standards and smart gmbh's
     requirements. Smart gmbh reserves the right to approve or disapprove of
     each sign's type, design and size.

(2)  smart gmbh may implement a signage program under which smart gmbh or a
     DaimlerChrysler Group Company designs, acquires and arranges for the
     installation of pre-approved signs at DISTRIBUTOR's or its Authorized
     Reseller's facilities under signage lease agreements.

(3)  Upon smart gmbh's request, DISTRIBUTOR and its Authorized Resellers shall
     sell any signage owned by them to smart gmbh or its designee at a price
     equal to the residual value of such signage determined by smart gmbh after
     allowing for all damage and wear and tear or a nominal price if no residual
     value exists.

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ARTICLE 8 - ORDERS, PRICING AND PAYMENT

8.1  ORDERS

(1)  DISTRIBUTOR shall place orders for Contract Goods through any Systems and
     in accordance with any procedures that smart gmbh may require or implement
     from time to time. All orders will be subject to terms and conditions
     (issued from time to time by smart gmbh) valid at the time of the order.
     Copies of the current terms and conditions of smart gmbh are attached
     hereto as ANNEX 6. In the event of any conflict, the provisions of this
     Agreement prevail over the terms and conditions.

(2)  smart gmbh will use its best efforts to fill all orders made by
     DISTRIBUTOR, subject to availability and production and logistic
     capacities. However, smart gmbh is free, in its sole discretion, to accept
     or reject any orders made by DISTRIBUTOR. Particularly, if demand for any
     Contract Good exceeds supply, smart gmbh may allocate supply in any manner
     it sees fit. This provision is subject to the terms of any other written
     agreement among DISTRIBUTOR and smart gmbh regarding orders of Contract
     Goods.

(3)  smart gmbh may declare any Contract Good obsolete and discontinue its
     manufacture, distribution or sale with six months written notice. This will
     not affect orders for Contract Goods accepted by smart gmbh, smart gmbh is
     not obliged to accept orders for obsolete Contract Goods except for Parts
     needed for warranty work or as replacement parts to the extent as required
     by Applicable Law. This is not intended to permit a de facto termination of
     this Agreement by smart gmbh.

(4)  smart gmbh may forward orders received from DISTRIBUTOR to another
     DaimlerChrysler Group Company or licensee which will sell the Contract
     Goods directly to DISTRIBUTOR. Unless otherwise agreed in writing with
     DISTRIBUTOR, those sales (including warranty) will be governed by the terms
     and conditions issued from time to time by the DaimlerChrysler Group
     Company or licensee selling the Contract Goods, provided such terms will
     not differ from the terms and conditions agreed upon by smart gmbh and
     DISTRIBUTOR. Those sales will not create any distributor, dealer or service
     center relationship between that DaimlerChrysler Group Company or licensee
     and DISTRIBUTOR, smart gmbh may process any claim arising from a sale by
     that DaimlerChrysler Group Company or licensee as if the sale had been made
     directly between smart gmbh and DISTRIBUTOR. DISTRIBUTOR shall process any
     right or claim arising from a sale made by that DaimlerChrysler Group
     Company or licensee to that DaimlerChrysler Group Company or licensee, and
     smart gmbh will not have any obligation, responsibility or liability in
     connection with that sale but such procedures shall not cause any higher
     IT-costs to DISTRIBUTOR.

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8.2 PRICING AND PAYMENT

*

(2)  The prices of Parts delivered by smart gmbh to DISTRIBUTOR will be
     calculated as defined in ANNEX 3.2.

(3)  Commencing 2008, the Parties will yearly, during the period January 1st
     to October 31st review and define volumes and prices (MSRP) applicable to
     Vehicles and spare parts and accessories ordered and delivered during the
     following year. Commencing 2010, the Parties will in addition yearly,
     during the period April 1st to October 31st, review and define discounts
     applicable to Vehicles and Parts ordered and delivered during the following
     year, smart gmbh (or the DaimlerChrysler Group Company or licensee selling
     the Contract Goods) may change prices or the charges for Contract Goods
     (including packing, handling and delivery charges included in prices) at
     any time, and make the changes effective immediately *

(4)  Upon smart gmbh's request, DISTRIBUTOR shall inform smart gmbh of
     DISTRIBUTOR's prices for Contract Goods to its Authorized Resellers and to
     retail customers and modify such prices based on consultations with smart
     gmbh subject to any limitations of Applicable Laws. DISTRIBUTOR and its
     Authorized Resellers shall comply with any pricing policies as may be from
     time to time established by smart gmbh, subject to any limitations of
     Applicable Laws.

(5)  DISTRIBUTOR shall promptly obtain and continuously maintain any United
     States governmental approvals required to effect any payment to smart gmbh.

ARTICLE 9 - LIABILITY AND INDEMNIFICATION

9.1 LIMITATION OR LIABILITY

(1)  Except as otherwise provided in this Agreement, either Party's liability
     for slight negligence is limited to a breach of duties essential to this
     Agreement and to typical damage foreseeable at the time of execution of
     this Agreement. This limitation does not apply to damage to life, body or
     health. As far as any damage is covered by insurance, either Party is only
     liable for costs or losses of the other Party in connection with that
     insurance.

(2)  Nothing in this Agreement, expressed or implied, is intended to give to any
     person other than the Parties any right, remedy or claim under or by reason
     of this Agreement. All covenants, stipulations, promises or agreements in
     this Agreement shall be for the sole and exclusive benefit of the Parties.

(3)  Any personal liability of either Party's legal representatives, directors,
     officers, employees and vicarious agents for slight negligence is excluded.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

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9.2 PRODUCT LIABILITY

(1)  DISTRIBUTOR shall comply with smart gmbh's rules and procedures as amended
     from time to time with respect to the analysis, determination, reporting,
     handling, and resolution of customer complaints, alleged defects, product
     liability claims, and all other product quality or safety- relevant issues.

(2)  smart gmbh shall indemnify DISTRIBUTOR or its Authorized Resellers
     (hereinafter "Indemnitees") from all Idemnifiable Costs that the
     Indemnitees may incur, become liable for, or that may be asserted or
     claimed against the Indemnitees as a result of alleged bodily injury or
     property damage claimed in a product liability claim or lawsuit, if and to
     the extent that a court of competent jurisdiction determines after trial
     and exhaustion of all appeals that:

     a)   a purported design defect or defect (including in materials or
          workmanship) created by the manufacturer (or manufacturer's suppliers,
          but not Distributor's supplier (other than smart GmbH or its
          affiliates)) in the relevant Vehicle (or its systems or components)
          manufacture or assembly allegedly caused the bodily injury or property
          damage beyond that to the relevant Vehicle themselves;

     b)   DISTRIBUTOR or its Authorized Resellers could not reasonably have
          discovered the defect during the Vehicle preparation or subsequent
          required servicing, maintenance and repair work (including service and
          recall action service measures) and could not reasonably have taken
          action to effectively remedy the defect; and

     c)   DISTRIBUTOR or its Authorized Resellers did not negligently fail to
          otherwise prevent the occurrence of the alleged bodily injury or
          property damage.

(3)  "Idemnifiable Costs" means in relation to any particular matter:

     (i)  all claims, penalties, fines, judgments or administrative actions
          made, imposed, rendered or taken against an Indemnitee with respect to
          that matter, and all settlements to resolve an Indemnitee's alleged
          liability for that matter;

     (ii) all reasonable costs and expenses (including the fees and
          disbursements of counsel or other advisors} incurred by an Indemnitee
          in assessing and defending against any alleged liability which would,
          if successfully asserted, be indemnifiable under clause (i); and

     (iii) all losses and direct damages incurred by an Indemnitee by reason of
          that matter.

(4)  To qualify for indemnification, DISTRIBUTOR and its Authorized Resellers
     shall assist and provide support to smart gmbh where necessary to resolve
     all product liability matters. The assistance and support of DISTRIBUTOR
     and its Authorized Resellers shall include, but not be limited to, the
     following:

     (i)  comply with the rules and procedures referenced in section 9.2.1 and
          promptly report to smart gmbh any discovered design defect or defect
          created by the manufacturer;

     (ii) immediately report to smart gmbh any actual or threatened product
          liability claim or lawsuit, and provide all information about the
          circumstances that gave rise to the claim or lawsuit, including an
          identification of the particular Relevant Vehicle at issue;

     (iii) secure evidence that is in the possession of, or that can be
          reasonably obtained by, DISTRIBUTOR or its Authorized Resellers that
          relates to the product liability claim, including a copy of any claim
          letter, complaint, court notice or other legal documents relating to
          the claim or lawsuit as well as a copy of any police or accident
          reports or pertinent photographs;

     (iv) notify smart gmbh in writing of its intent to seek indemnification
          within 10 business days of service of a complaint, claim letter, or
          other document identifying an actual or threatened claim or lawsuit;

                                                                   Page 18 of 86

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     (v)  refrain from any action or omission that could substantially impair
          the defense of the claim or lawsuit and shall fully cooperate with
          smart gmbh in defending the claim or lawsuit; and

     (vii) provide smart gmbh with any information, requested by smart gmbh,
          that is in the possession of DISTRIBUTOR or its Authorized Resellers.

(5)  smart gmbh or its designee can assume the defense of or intervene in the
     lawsuit at any time, including during appellate proceedings.

     (i) In the event that smart gmbh assumes the defense of a claim or lawsuit,
     smart gmbh shall maintain control of such defense, including the selection
     of legal counsel, the formulation of legal strategy, and any decision as to
     settlement. To the extent that Indemnitees incur any attorney's fees or
     costs in defending against a claim or lawsuit following smart gmbh's
     assumption of the defense of such claim or lawsuit, smart gmbh shall be
     under no obligation to reimburse the Indemnitees for such attorney's fees
     or costs, smart gmbh shall not be liable for any compromise or settlement
     made by one or more Indemnitees without the consent of smart gmbh.

     (ii) In agreeing to defend, smart gmbh may make its agreement conditional
     on the continued existence of the state of facts as then known to such
     parties, and may provide for the withdrawal of such defense at such time as
     facts arise which, if known at the time of the original request for a
     defense, would have caused smart gmbh to refuse such a request. If smart
     gmbh withdraws from its agreement to defend, in whole or in part, It shall
     give timely notice of its intent to so withdraw. Such notice shall be in
     writing and shall be effective upon receipt.

(6)  If DISTRIBUTOR or any of its Authorized Resellers falls to comply with the
     requirements specified in this Article 9, then smart gmbh shall have no
     obligation to indemnify DISTRIBUTOR or such Authorized Reseller.

9.3 FORCE MAJEURE

(1)  A Party's failure or delay in performing any of its obligations under this
     Agreement will not be deemed a breach of this Agreement to the extent that
     such failure or delay is directly due to any Force Majeure Event.

(2)  "Force Majeure Event" means any event:

     (i)  that is beyond the affected Party's reasonable control;

     (ii) the occurrence of which the affected Party could not reasonably be
          expected to take into account at the time of entering into this
          Agreement; and

     (iii) the effects of which the affected Party could not reasonably have
          avoided or overcome.

(3)  A default or delay by a third party whom the affected Party has engaged to
     perform the whole or part Of this Agreement will be deemed a Force Majeure
     Event if and to the extent that:

     (i)  the affected Party establishes the requirements set out in Clause (1);
          and

     (ii) the affected Party proves that the same requirements apply to the
          third party.

(4)  In the absence of proof to the contrary and unless otherwise agreed in this
     Agreement expressly or impliedly, a Party invoking a Force Majeure Event
     shall be presumed to have established the conditions described in Clauses
     (2) (i) and (ii) in case of the occurrence of one or more of the following
     events:

     (i)  war (whether declared or not), armed conflict or the serious threat of
          same (including but not limited to hostile attack, blockade, military
          embargo) hostilities, invasion, act of a foreign enemy, extensive
          military mobilization;

     (ii) civil war, riot, rebellion and revolution, military or usurped power,
          insurrection, civil

                                                                   Page 19 of 86

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          commotion or disorder, mob violence, act of civil disobedience;

     (iii) act of terrorism, sabotage or piracy;

     (iv) act of authority whether lawful or unlawful, compliance with any law
          or governmental order, rule, regulation or direction, curfew
          restriction, expropriation, compulsory acquisition, seizure of works,
          requisition, nationalization;

     (v)  act of God, plague, epidemic, natural disaster such as but not limited
          to violent storm, cyclone, typhoon, hurricane, tornado, blizzard,
          earthquake, volcanic activity, landslide, tidal wave, tsunami, flood,
          damage or destruction by lightning, drought;

     (vi) explosion, fire, destruction of machines, equipment, factories and of
          any kind of installation, prolonged break-down of transport,
          telecommunication or electric current; and

     (vii) general labor disturbance such as but not limited to boycott, strike
          and lock-out, go-slow, occupation of factories and premises.

          Adverse economic conditions or general financial or operational
          constraints are not deemed to be a Force Majeure Event.

(5)  The consequences set out in Clause (1) apply from the time at which the
     Force Majeure Event causes the failure to perform or the delay, if the
     affected Party has given notice thereof without delay, or, if the affected
     Party has not given notice thereof without delay, from the time at which
     notice thereof reaches the other Party.

(6)  Where the effect of the Force Majeure Event is temporary, the consequences
     set out under Clause (1) shall apply only to the extent that and as long as
     the Force Majeure Event impedes performance by the affected Party of its
     contractual duties. Where this Clause applies, the affected Party shall
     notify the other Party as soon as the Force Majeure Event ceases to impede
     performance of its contractual duties.

(7)  The affected Party shall:

     (i)  consult with the other Party concerning suitable interim arrangements
          and exercise due diligence to eliminate or remedy the Force Majeure
          Event; and

     (ii) continue performance as soon as reasonably possible after such cause
          of failure is removed.

ARTICLE 10 - DESIGNATION AND MARKS

10.1 DESIGNATION

DISTRIBUTOR has the right and the duty during the term of and for activities in
connection with this Agreement to style itself in all documents, notices and
advertisements as set forth in ANNEX 2, under the heading "Designation".

10.2 USE OF SMART MARKS

Within the scope of the activities under this Agreement, DISTRIBUTOR and its
Authorized Resellers may use certain marks of smart gmbh in accordance with the
Trade and Service Marks Licensing Clauses set forth in ANNEX 7, which are an
integral part of this Agreement.

10.3 COMPANY NAME

DISTRIBUTOR is permitted to use the smart word Mark in the combination "smart
USA" as an integral part of its company name while distributing the Contract
Goods. All such uses of the smart word Mark shall inure to the benefit of smart
gmbh, DISTRIBUTOR hereby assigns and transfers to smart gmbh any and all rights
arising of such uses except the rights granted by smart gmbh to DISTRIBUTOR
under this Agreement. ANNEX 7 applies accordingly.

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10.4 TERM OF USE

DISTRIBUTOR's right to use the smart word Mark in this way shall automatically
terminate upon the expiration or termination of this Agreement. Notwithstanding,
in case the Contract Goods are, upon termination of the Distributor Agreement,
not resold to smart gmbh, but remain with DISTRIBUTOR according to article 14.4
(viii) and 14.4 (ix) of the Distributor Agreement, it may have a limited right
to use the smart Marks as defined in Annex 7.

ARTICLE 11 - STATUS AND OWNERSHIP OF DISTRIBUTOR

11.1 STATUS OF DISTRIBUTOR

(1)  DISTRIBUTOR and its Authorized Resellers are independent contractors and
     shall buy and sell Contract Goods under this Agreement as an independent
     business for their own account. This Agreement does not make DISTRIBUTOR or
     any of its Authorized Resellers a general or special agent, partner, joint
     venturer or employee of any DaimlerChrysler Group Company and does not
     create any fiduciary relationship or any other relationship of trust or
     confidence.

(2)  DISTRIBUTOR and its Authorized Resellers have no authority to make binding
     obligations for or act on behalf of any DaimlerChrysler Group Company.
     DISTRIBUTOR and its Authorized Resellers shall not represent, directly or
     by implication, to their customers or other third parties that they have
     such authority.

(3)  DISTRIBUTOR shall maintain a financial structure and sufficient
     capitalization to act as a Vehicle importer and distributor in the United
     States, as further described in Article 12.1. As a Vehicle importer and
     distributor in the United States, DISTRIBUTOR and its Authorized Resellers
     shall comply with all U.S. (i) motor vehicle importation requirements, (ii)
     Vehicle Safety Requirements, (iii) Environmental Protection Agency
     Requirements, and (iv) the emission requirements for the states of
     California, New York, New Jersey, Connecticut, Massachusetts, Maine, Rhode
     Island, and Vermont; provided that smart gmbh shall provide DISTRIBUTOR
     with Vehicles prior to importation that are in compliance with all
     applicable emissions and safety laws.

11.2 DISTRIBUTOR'S AUTHORITY AND OWNERSHIP

(1)  DISTRIBUTOR represents, warrants and covenants that:

     (i)  it is duly organized, validly existing and in good standing under
          Applicable Laws, and has and will always have full authority and all
          permits, authorizations and licenses necessary or advisable to enter
          into or perform its obligations under this Agreement;

     (ii) the individuals or entities listed in ANNEX 2, under the heading
          "Ownership Interests", own all of DISTRIBUTOR's voting securities or
          other ownership interests in the percentages shown in ANNEX 2; and

     (iii) the individuals and entities listed in Annex 2, under the headings
          "Ownership Interests" and "Key Personnel", have not been subject to
          any voluntary or involuntary bankruptcy or insolvency proceedings, or
          engage in or are charged with practices that constitute an offense
          under any anti-bribery, anti-corruption, export control, competition,
          tax, stock exchange or corporate governance legislation or that
          jeopardize smart gmbh's good name and goodwill, or act in a manner
          which substantially and adversely affects the reputation, distribution
          and promotion of smart gmbh's or any DaimlerChrysler Group Company's
          goods and services, and those individuals are, in addition, not
          charged with or convicted of any offense punishable by imprisonment
          for more than one year, or a crime involving dishonesty, false
          statement or theft.

(2)  DISTRIBUTOR shall notify and request the approval of smart gmbh at least
     sixty days prior to any proposed change in:

                                                                   Page 21 of 86
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     (i)  the senior management of DISTRIBUTOR or the legal or beneficial
          ownership of any of DISTRIBUTOR's voting securities or other ownership
          interests;

     (ii) the name or form of DISTRIBUTOR's legal entity; or

     (iii) the location of DISTRIBUTOR's principle place of business.

(3)  No such changes may be made without smart gmbh's prior consent. DISTRIBUTOR
     shall provide smart gmbh complete and accurate information as to any voting
     trusts, shareholders' agreements or other agreements or undertakings
     affecting the voting of DISTRIBUTOR's voting securities or other ownership
     interests and their beneficial ownership.

(4)  If DISTRIBUTOR has owners other than natural persons. DISTRIBUTOR shall
     promptly provide smart gmbh complete and accurate information as to such
     owners, including their ownership percentages and ultimate controlling
     parties. If any ultimate controlling party is a publicly-traded
     corporation, DISTRIBUTOR shall also promptly provide any information
     disseminated publicly to its or such controlling party's shareholders, or
     disclosed to governmental regulatory agencies, as smart gmbh may from time
     to time request.

ARTICLE 12 - FINANCIAL STRUCTURE, BOOKS, RECORDS AND ACCOUNTS, STATEMENTS AND
AUDIT

12.1 FINANCIAL STRUCTURE, BOOKS, RECORDS AND ACCOUNTS, AND STATEMENTS

(1)  DISTRIBUTOR and its Authorized Resellers shall maintain a sound financial
     structure with a working capital level and financing capability that
     satisfy the operating requirements of DISTRIBUTOR or its Authorized
     Resellers, as the case may be. In particular, the working capital level and
     financing capability must be sufficient for meeting the smart Dealership
     Standards, smart gmbh's requirements as well as any Minimum Sales Volumes
     and other targets as per the Target Agreements under this Agreement, and
     must be acceptable to smart gmbh. At no time may DISTRIBUTOR's working
     capital dedicated to its operations related to Contract Goods be less than
     the amount specified by smart gmbh from time to time.

(2)  DISTRIBUTOR represents, warrants and covenants that it will not create,
     grant or issue any security, charge or rights over or affecting any
     substantial part or the whole of the business, assets or undertakings of
     DISTRIBUTOR (other than liens in the nature of "floor plan" or inventory
     financing liens and others in the ordinary course of business) without or
     in violation of the terms of smart gmbh's prior consent. DISTRIBUTOR shall
     notify smart gmbh of its intent to take any such measure at least thirty
     (30) days prior to the intended date of that measure.

(3)  DISTRIBUTOR and its Authorized Resellers shall maintain books, records and
     accounts which, in reasonable detail, accurately and fairly reflect the
     transactions and dispositions of their assets.

(4)  DISTRIBUTOR shall send to smart gmbh a balance sheet and profit and loss
     statement for its operations relating to the sale, distribution and service
     of Contract Goods within ninety days after each fiscal year-end. These
     statements shall be prepared in accordance with international accounting
     standards applicable to the DISTRIBUTOR in the United States of America
     (US-GAAP) and, if requested by smart gmbh, certified by a public auditor
     retained by DISTRIBUTOR. If requested by smart gmbh, DISTRIBUTOR shall
     submit an unaudited interim balance sheet and profit and loss statement for
     each fiscal quarter or such other period as smart gmbh may specify within
     thirty days in preliminary version and within sixty days in final version
     after each quarter or such period, as appropriate. If requested by smart
     gmbh, DISTRIBUTOR shall provide the same financial reporting for any entity
     or group of entities that, directly or indirectly, owns 50% or more of
     DISTRIBUTOR's voting securities or other ownership interests.

12.2 AUDIT

(1)  DISTRIBUTOR and its Authorized Resellers shall permit smart gmbh and its
     representatives during normal office hours to examine and make copies of
     DISTRIBUTOR's and its Authorized Resellers' books and records relating to
     the purchase, sale, distribution and servicing of Contract

                                                                   Page 22 of 86

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     Goods (including, warranty services or claims and sales and incentive
     programs), to verify compliance by DISTRIBUTOR and its Authorized Resellers
     with the terms of this Agreement and the smart Dealership Standards as well
     as smart gmbh's requirement, and to assess DISTRIBUTOR's and its Authorized
     Resellers' rating in any customer satisfaction program.

(2)  DISTRIBUTOR and its Authorized Resellers shall assist smart gmbh and its
     representatives in every way to carry out their tasks, in particular by
     promptly providing all information and materials and by permitting
     unhindered access and inspection of the books and records. If duplicating
     facilities are not available on DISTRIBUTOR's or its Authorized Resellers'
     premises, smart gmbh or its representatives may remove the books and
     records from the premises for purposes of making copies.

(3)  All payments made by smart gmbh to DISTRIBUTOR or its Authorized Resellers
     deriving from warranty, sales incentive or other claims are subject to the
     results of possible audits that may be performed at any time by or at the
     request of smart gmbh. Any discrepancies between the information provided
     by DISTRIBUTOR or its Authorized Resellers and the results of any such
     audit may result in non-payment or chargeback of the claims, smart gmbh
     may chargeback DISTRIBUTOR on any credit account DISTRIBUTOR may have at
     smart gmbh or by direct billing for all or any part of the payments
     deriving from warranty, sales incentive and or any sums that may be
     otherwise due and owing to smart gmbh related to smart gmbh's programs or
     other claims that have been paid by smart gmbh and for which the required
     evidence is lacking. In addition, smart gmbh may take other action either
     under this Agreement or otherwise as it deems appropriate in the event that
     it reasonably believes that DISTRIBUTOR or its Authorized Resellers have
     failed to comply with the procedures required to make claims for payment
     under smart gmbh's programs, including set-off against any amounts that may
     be owed by smart gmbh. If there will be a set-off, smart gmbh will document
     the reasons for the set-off prior to taking such action and provide such
     documentation to DISTRIBUTOR or its Authorized Reseller prior to the
     set-off.

ARTICLE 13 - OTHER OBLIGATIONS OF DISTRIBUTOR

13.1 DEAL INFORMATION AND ASSISTANCE

(1)  DISTRIBUTOR and its Authorized Resellers (through DISTRIBUTOR) shall
     promptly notify smart gmbh of any potential offer to sell or sale of
     Contract Goods that they, for any reasons whatsoever, are unable to make.

(2)  DISTRIBUTOR shall provide such general information, cooperation and
     assistance as may be from time to time requested by smart gmbh in
     connection with the business of distribution of Contract Goods (including,
     but not limited to, direct offers or sales by smart gmbh in the Contract
     Territory) and any vehicle homologation and related issues, subject to the
     provision of Clause 1.3.

13.2 CUSTOMER DATA

DISTRIBUTOR and its Authorized Resellers shall collect all customer data suited
for identifying existing and potential customers of Contract Goods and for
developing marketing concepts and such other customer information as required by
smart gmbh. DISTRIBUTOR and its Authorized Resellers shall provide any and all
of this date and information to smart gmbh in a form and manner as requested by
smart gmbh from time to time. Collection of customer data by DISTRIBUTOR and
its Authorized Resellers, and use by smart gmbh, shall comply with applicable
legal requirements.

13.3 CUSTOMER SATISFACTION POLICIES

DISTRIBUTOR end its Authorized Resellers, upon smart gmbh's request, shall
continuously participate in any program and rating scheme with regard to
customer satisfaction policies smart gmbh may institute with regard to all
aspects of DISTRIBUTOR's and/or its Authorized Resellers' business in the
Contract

                                                                   Page 23 of 86

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Territory from time to time.

13.4 OTHER GOODS

DISTRIBUTOR and its Authorized Resellers shall not, without smart gmbh's prior
consent, directly or indirectly through subsidiaries:

(i)  manufacture motor vehicles, chassis or parts thereof;

(ii) sell or offer or arrange for sale of any new vehicles of a brand other than
     the Vehicles except the vehicles specified in ANNEX 2, under the heading
     "Other Goods";

(iii) sell or offer or arrange for the sale of any parts, including, without
     limitation, counterfeit parts that bear marks confusingly similar to smart
     Marks or that may otherwise mislead the public and/or injure the reputation
     of any DaimlerChrysler Group Company or any of its products; or

(iv) conclude with third parties agreements on the distribution and/or servicing
     of motor vehicles or chassis other than Vehicles, including Vehicles that
     have been modified technically or visually as well as parts kits offered by
     third parties for this purpose unless prior agreed with smart gmbh.

13.5 COMPLIANCE WITH LAWS

(1)  DISTRIBUTOR, for itself and on behalf of its Affiliated Persons,
     represents, warrants and covenants that:

     (i)  DISTRIBUTOR and its Affiliated Persons are solely responsible for
          complying, have to their best knowledge complied, and will comply,
          with Applicable Laws and have to their best knowledge not taken and
          will not take or fail to take any action, which act or omission would
          subject smart gmbh or any DaimlerChrysler Group Company to liability
          under Applicable Laws;

     (ii) neither DISTRIBUTOR nor any of its Affiliated Persons has, to its or
          their best knowledge, offered, paid, given or loaned or promised to'
          pay, give or loan, or will offer, pay, give or loan or promise to pay,
          give or loan, directly or indirectly, money or any other thing of
          value to or for the benefit of any Government Official, for the
          purposes of corruptly (a) influencing any act or decision of such
          Government Official in his official capacity, (b) inducing such
          Government Official to do or omit to do any act in violation of his
          lawful duty, (c) securing any improper advantage or (d) inducing such
          Government Official to use his influence with a Government Entity to
          affect or influence any act or decision of that Government Entity, in
          each instance to direct business to DISTRIBUTOR, its Authorized
          Resellers, smart gmbh or any DaimlerChrysler Group Company; and

     (iii) neither DISTRIBUTOR nor any of its Affiliated Persons is or will
          become a Government Entity or a Government Official whose official
          duties include decisions to direct business to DISTRIBUTOR, its
          Authorized Resellers, smart gmbh or any DaimlerChrysler Group Company
          or to supervise, or otherwise control or direct the actions of,
          Government Officials who are in a position to direct business to
          DISTRIBUTOR, its Authorized Resellers, smart gmbh or any
          DaimlerChrysler Group Company.

(2)  DISTRIBUTOR is obliged to inform smart gmbh about state and local laws and
     regulations and federal laws and regulations of the United States of
     America that smart gmbh, as "manufacturer" of Vehicles, shall be required
     to comply with. It is of high relevance to smart gmbh to obtain information
     about potential and actual modifications and/ or additions to theses
     regulations as early as possible. DISTRIBUTOR shall, and shall cause its
     Authorized Resellers to, assist and cooperate fully with the efforts of
     smart gmbh and any DeimierChrysler Group Company to comply with Applicable
     Laws, including providing smart gmbh with all necessary information about
     warranty defects and field defects with emissions and/or safety related
     component involved, in order to allow smart gmbh to carry out all relevant
     defect reporting tasks as provided by applicable law in this matter, and
     vice versa.

(3)  smart gmbh for itself and on behalf of its Affiliated Persons, represents,
     warrants and covenants that smart gmbh and its Affiliated Persons are
     solely responsible for complying, and will comply with Applicable Laws, and
     will not take or fail to take any action, which act or omission would

                                                                   Page 24 of 86

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     subject DISTRIBUTOR and its Authorized Resellers and its Affiliated Persons
     to liability under Applicable Law.

(4)  In no event will a party be obligated to another under or in connection
     with this Agreement to act or refrain from acting if that party believes
     that such act or omission would cause it to be in violation of Applicable
     Laws. In no event will a party be liable to the other for any act or
     omission which the party believes is necessary to comply with Applicable
     Laws.

(5)  If a party or any of its Affiliated Persons breaches any of the
     representations, warranties or covenants in this Article 13.5, each of
     which is deemed to be material and continuously made throughout the term of
     this Agreement, then, in addition to any other rights the other may have
     under this Agreement, the other may:

     (i)  declare a forfeit of any unpaid amounts owing to the party and will be
          entitled to repayment of any amounts paid or credited to the party, in
          each case, which are prohibited by Applicable Laws; and

     (ii) withhold delivery of Contract Goods to the party without liability to
          the party for any claims, losses or damages related to such decision.

(6)  DISTRIBUTOR shall comply with smart gmbh's rules and procedures with
     respect to the implementation of all product recalls or field measures
     internationally and in the United States of America (Annex 10), consistent
     with the laws and regulations of the United States of America. Upon smart
     gmbh's request, DISTRIBUTOR shall implement a recall or field measure, in
     the manner set out in the recall or field measure plan as determined by
     smart gmbh, smart gmbh shall provide necessary assistance to DISTRIBUTOR
     for the conduct of such recall or field measure. The costs of such recall
     or field measure shall be borne by either smart gmbh or DISTRIBUTOR or both
     Parties jointly, depending on which Party is responsible for the product
     issue giving rise to the recall or field measure under the terms of this
     Agreement. In the event the Parties cannot agree on the degree of
     responsibility of each Party for such defect, either Party may demand a
     final and binding decision by an arbitrator in accordance with Article 17.2
     of this Agreement.

(7)  From the date DISTRIBUTOR becomes subject to the reporting requirements
     under the laws and regulations of the United States of America, including
     the Transportation Recall Enhancement Accountability And Documentation
     (TREAD) Act of 2000 (the "TREAD Act", which term shall include any
     successor federal statute), DISTRIBUTOR shall comply with DISTRIBUTOR's
     reporting requirements.

(8) Prior to releasing to a governmental authority any documents relating to
     the relevant Vehicles, including reports needed to comply with
     DISTRIBUTOR's reporting requirements under the laws of the United States of
     America, DISTRIBUTOR shall consult with smart gmbh, DISTRIBUTOR shall
     provide such documents sufficiently in advance of such release to permit
     smart gmbh an adequate amount of time to review such documents and consult
     with DISTRIBUTOR regarding such documents. Prior to and subsequent to the
     release of such documents, DISTRIBUTOR shall cooperate with smart gmbh at
     all times with respect to such documents, smart gmbh shall timely respond
     to DISTRIBUTOR to enable DISTRIBUTOR to comply with the governmental
     requirements. Distributor will ask far time extensions or other
     administrative relief from the applicable government agencies, as requested
     by smart gmbh. The failure by smart gmbh to timely respond to DISTRIBUTOR
     shall not prevent DISTRIBUTOR from complying with DISTRIBUTOR's reporting
     requirements under the laws of the United States of America.

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(6)  For purposes of this Article 13.5, the following terms have the meanings
     set forth below:

     (i)  "Applicable Laws" means the U.S. Foreign Corrupt Practices Act and
          German anti- corruption laws, without regard to their jurisdictional
          limitations, U.S. and German export control laws to the extent
          applicable to Contract Goods, and all other laws, regulations, rules,
          orders, decrees or other directives carrying the force of law
          applicable to any activities engaged in by a party or any of its
          Affiliated Persons in connection with this Agreement or any other
          business matters involving a party or any of its Affiliated Persons,
          in each case as the same may be amended from time to time;

     (ii) "Affiliated Persons" means the party's officers, directors, employees,
          or agents, or any of its stockholders, principals or owners acting on
          its behalf or in its interests;

     (iii) "Government Entity" means a government or any department, agency or
          instrumentality thereof (including any company or other entity
          controlled by a government), a political party or a public
          international organization; and

     (iv) "Government Official" means any officeholder, employee or other
          official (including any immediate family member thereof) of a
          Government Entity, any person acting in an official capacity for a
          Government Entity or any candidate for political office.

13.6 EXECUTION OF RELATED AGREEMENTS

(1)  Upon smart gmbh's request from time to time, DISTRIBUTOR and its Authorized
     Resellers shall execute any agreement relating to the Allocation of
     Functions is use of smart Marks or Systems or any other matter related to
     this Agreement in the form from time to time adopted by smart gmbh;
     provided, that the terms and conditions of such agreements do not impose an
     unreasonable burden on DISTRIBUTOR or its Authorized Resellers or are
     inconsistent with this Agreement or change the relationship of the Parties
     set forth in this Agreement. The final version of the Allocations of
     Functions will be attached by the Parties as Annex 8 by December 31st,
     2006.

(2)  DISTRIBUTOR shall comply with all laws and regulations applicable to motor
     vehicle importers, of Contract Goods in the United States including without
     limitation all safety and/or emissions related laws and regulations;
     provided that smart gmbh shall provide DISTRIBUTOR with (i) Contract Goods
     prior to importation that are in compliance with all applicable laws, (ii)
     all information within the control of smart gmbh necessary for the Monroney
     label, (iii) cooperation necessary to enable DISTRIBUTOR to file all
     necessary reports and documentation with US and state regulatory agencies,
     (iv) field retrofits and/or other modifications to the Contract Goods to
     remain in compliance. DISTRIBUTOR represents that it shall within 10 day of
     signing this agreement make all filings with United States government
     agencies necessary to be registered as the importer of record for the
     Contract Goods.

(3)  DISTRIBUTOR shall be solely and exclusively responsible for compliance with
     all U.S. safety and/or emissions laws and regulations, including without
     limitation all submissions required by the TREAD Act, Title II of the Clean
     Air Act, Title 13 of the California Code of Regulations and the provisions
     therein adopted by the states of New York, New Jersey, Connecticut, Rhode
     Island, Massachusetts, Maine, and Vermont provided that smart gmbh shall
     provide DISTRIBUTOR with (i) Contract Goods prior to importation that are
     in compliance with all applicable laws, (ii) all information within the
     control of smart gmbh necessary for the Monroney label, (iii) cooperation
     necessary to enable DISTRIBUTOR to file all necessary reports and
     documentation with US and state regulatory agencies, (iv) field retrofits
     and/or other modifications to the Contract Goods to remain in compliance.
     DISTRIBUTOR shall file on its own behalf all reports relating to recalls,
     service campaigns or field actions relating to the Contract Goods, or any
     submission in response to formal or informal inquiries from the National
     Highway Traffic Safety Administration (NHTSA), the Environmental Protection
     Agency (EPA), or the California Air Resources Board and the equivalent
     agencies in states adopting California standards pursuant to other
     statutory authorities. DISTRIBUTOR shall immediately inform smart gmbh
     about any formal or informal government inquiry relating to the safety
     and/or emissions of the Contract Goods and smart gmbh will immediately
     inform DISTRIBUTOR of any formal or informal government inquiry relating to
     the safety and/or emissions of the Contract Goods (in the versions intended
     for the Contract Territory, as offered to DISTRIBUTOR).

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(4)  The Contract Goods shall be accounted for and included within
     DAIMLERCHRYSLER Group's vehicle fleet for purposes of compliance with the
     Corporate Average Fuel Economy program pursuant to 49 U.S.C. Chapter 329.
     DISTRIBUTOR shall promptly execute a separate CAFE agreement implementing
     the aforesaid, smart gmbh will submit such CAFE agreement to the National
     Highway Traffic Safety Administration, as required by regulation, in order
     to effectuate this intention.

(5)  The Contract Goods shall be accounted for and included within
     DAIMLERCHRYSLER Group's vehicle fleet for purposes of compliance with all
     regulatory phase-in requirements relating to federal motor vehicle safety
     standards promulgated under 49 U.S.C. Chapter 301. smart gmbh will submit
     this contract to the National Highway Traffic Safety Administration, as
     required by regulation, in order to effectuate this intention.

(6)  smart gmbh agrees that the Contract Goods shall meet the specifications,
     technical publications, manuals, bulletins or written official
     representations made by smart gmbh.

13.7 EMISSIONS CREDITS

The Parties agree that all emissions credits generated in connection with the
manufacture, certification, distribution, and sale of Vehicles are the property
of smart gmbh and DaimlerChrysler AG, 'Emissions credits' include, but are not
limited to, zero emission vehicle credits, partial zero emissions credits, and
non-methane organic gas credits, NOx Credits. If and to the extent DISTRIBUTOR
has any rights, DISTRIBUTOR promptly will take all actions necessary to ensure
that smart gmbh and DaimlerChrysler AG obtain the full benefit of all such
emission credits, at smart GmbH's expense, if any gmbh and DaimlerChrysler AG
will not pay any compensation to DISTRIBUTOR in connection with the emissions
credits. DISTRIBUTOR makes no representation that DISTRIBUTOR has any rights in
such credits to begin with or that credits can be assigned / transferred. The
Parties understand that such credits already accrue for the benefit of smart
GmbH / DaimlerChrysler AG based on DaimlerChrysler AG certifying the Vehicles.
If and to the extent DISTRIBUTOR has any rights and as permitted by applicable
law, emission credits received by DISTRIBUTOR as result of this Agreement shall
be transferred / assigned to smart GmbH and DaimlerChrysler AG by DISTRIBUTOR
without recourse to DISTRIBUTOR.

ARTICLE 14 - TERM AND TERMINATION

14.1 TERM OF THIS AGREEMENT

(1)  This Agreement will become effective on the date set out in ANNEX 2, under
     the heading "Effective Date".

(2)  This Agreement has a term until December 31st, 2021. DISTRIBUTOR or its
     Authorized Resellers will not have any claims of compensation against smart
     gmbh as a result of the expiration of the Distributor Agreement on this
     date.

(3)  A termination of production of Vehicles for the USA before end of 2011 (at
     sole discretion of smart gmbh) or smart gmbh's decision to not pursue this
     business intention before end of 2011 or smart gmbh's decision to not
     develop a successor model for the USA of Vehicles or to not commercialize
     this successor model in the USA shall constitute a good cause for
     termination of the business relationship (except for the continued supply
     of spare parts and accessories as required by Applicable Law and this
     Agreement) and respectively this Agreement, upon proper notice six months
     prior to the termination of production of Vehicles for the USA or upon
     notice in writing from smart gmbh to DISTRIBUTOR by December 31st, 2012
     effective December 31st 2014 if the decision is not to develop a successor
     model for the USA of Vehicles or not commercialize this successor model in
     the USA.

     In case smart gmbh decides to not pursue this business intention before the
     retail sales activities have been started by DISTRIBUTOR (i.e. first
     Authorized Reseller has opened and is selling

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     Vehicles) or in case of a termination of production of Vehicles for the USA
     after start of retail activities but before end of 2011, smart gmbh shall
     pay the following to DISTRIBUTOR or UAG, as applicable:

     (i)  no compensation but only refund of the not yet depreciated investment
          of DISTRIBUTOR, originally amounting to no more than * US$ based upon
          current envisioned strategy and

     (ii) cancellation/termination costs incurred by UAG or DISTRIBUTOR,
          including payments of damages owed under Applicable Law to terminated
          Authorized Resellers of DISTRIBUTORS, in any and all cases * according
          to Clause 5.1 (1), 2nd paragraph, if not been depreciated yet and
          under the condition that the number of Authorized Resellers has been
          agreed by the Parties before execution of the investments. It is
          estimated that a maximum of 70 Authorized Resellers will be appointed
          by 2010.

          DISTRIBUTOR is obliged to provide evidence of its and Authorized
          Reseller's investments, depreciation and profits already generated and
          costs being incurred. Before the DISTRIBUTOR makes material additional
          investments in excess of * DISTRIBUTOR will agree these plans with
          smart gmbh.

          In case smart gmbh decides to terminate production of Vehicles for the
          USA after start of retail sales activities from beginning 2012 onward
          compensation and reimbursement shall be paid by smart gmbh to UAG and
          DISTRIBUTOR as applicable, as provided in the previous paragraphs.

          In case smart gmbh decides to not develop a successor model for the
          USA of Vehicles and/or decides to not commercialize this successor
          model in USA, no compensation nor cost refund shall be paid by smart
          gmbh to UAG nor to DISTRIBUTOR because of those reasons if the
          termination of this Agreement by smart gmbh for those reasons is
          effective December 31st, 2014. By December 31st, 2012 smart gmbh shall
          inform DISTRIBUTOR whether they will develop a successor model or not
          or if so whether it will be commercialized or not.

          In the event of such a termination of production of Vehicles for the
          USA, smart gmbh may exercise its option to purchase all of the
          outstanding voting rights of the DISTRIBUTOR in accordance with the
          methodology specified in the "Option Agreement".

14.2 TERMINATION WITH IMMEDIATE EFFECT

(1)  Either Party may terminate this Agreement by notice to the other Party with
     immediate effect for good cause.

(2)  Good cause exists, without limitation and as examples only, in the events
     expressly set forth in this Agreement or if:

     (i)  a Party is in breach of an obligation under this Agreement despite
          having been given due warning by the other Party and despite having
          had sufficient opportunity and time to remedy that breach. No warning
          is necessary if the violation of material obligations under this
          Agreement is so grave that the other Party cannot reasonably be
          expected to continue the contractual relationship any longer,

     (ii) a Party is in breach of any representations or warranties expressly
          set forth in this Agreement;

     (iii) a Party makes any fraudulent statement or submission, or any material
          misrepresentation to the other;

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

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     (iv) a Party or any of its officers, employees, agents or representatives
          has misrepresented any material facts which were relied upon by the
          other Party in entering into this Agreement and that other Party would
          not have entered into this Agreement, had it known of that
          misrepresentation;

     (v)  voluntary or involuntary proceedings are filed by or against a Party
          under bankruptcy or insolvency laws or under laws for arrangement,
          composition, judicial management, liquidation, dissolution,
          receivership or similar procedures, or either Party seeks or consents
          to similar relief or remedies without proceedings and, in the case of
          involuntary proceedings, they are not dismissed within forty-five
          days;

     (vi) a court, arbitral tribunal or government authority having jurisdiction
          declares invalid or refuses to enforce any provision of this
          Agreement, that provision is a material term of this Agreement to the
          terminating Party and the Parties cannot reach an agreement in good
          faith on a replacement provision for the void or non-enforceable
          provision;

     (vii) a Force Majeure Event prevents a Party from performing its
          obligations under this Agreement for more than one hundred eighty
          (180) days and such failure to perform is continuing when notice of
          termination is given; or

     (viii) any existing or future agreement between DISTRIBUTOR or UAG and
          smart gmbh or a DaimlerChrysler Group Company (for as long as smart
          gmbh is a subsidiary of DaimlerChrysler AG) is terminated for reasons
          equal or similar to those set forth in Clause (2) and (3) which have
          an impact on the contractual relationship under this Agreement; or

     (ix) a Party, for any reason whatsoever, cannot reasonably be expected to
          continue the contractual relationship until ordinary termination
          becomes effective.

(3)  In addition to the events described in Clause (2) above and anywhere else
     in this Agreement, either party may terminate this Agreement by notice to
     the other party with immediate effect upon the occurrence of the following
     events:

     (i)

          a.   As to smart gmbh, if DISTRIBUTOR fails to pay smart gmbh or any
               DaimlerChrysler Group Company or licensee any amount due under
               this Agreement or any sales agreement for Contract Goods when
               due, if such payment default is not cured within thirty (30) days
               of the date the amount in question became due and payable to
               smart gmbh; and

          b.   As to DISTRIBUTOR, if smart gmbh or any DaimlerChrysler Group
               Company fails to pay DISTRIBUTOR any amount due under this
               Agreement or any sales agreement For Contract Goods when due, if
               such payment default is not cured within thirty (30) days of the
               date the amount in question became due and payable to
               DISTRIBUTOR;

     (ii) DISTRIBUTOR substantially ends its sales and service activities under
          this Agreement;

     (iii) DISTRIBUTOR is merged into another entity, dissolved, expropriated,
          sequestered or nationalized, or DISTRIBUTOR's legal existence is
          suspended or revoked;

     (iv) DISTRIBUTOR has not notified and requested the approval of smart gmbh
          at least sixty days prior to any proposed change in management control
          of DISTRIBUTOR or the legal or beneficial ownership of any of
          DISTRIBUTOR's voting securities or other ownership interests, the name
          or form of DISTRIBUTOR's legal entity, or the location of
          DISTRIBUTOR's place of business;

     (v)  an individual named in ANNEX 2, under the heading "key Personnel",
          stops participating actively, substantially and continuously in
          DISTRIBUTOR's business operations under this Agreement and either a
          replacement is appointed without smart gmbh's prior consent or a
          replacement acceptable to smart gmbh is not appointed within a
          reasonable time;

     (vi) DISTRIBUTOR's legal and/or beneficial shareholders or owners or its or
          their officers or managers, or any individual or entity named in ANNEX
          2, under the headings "Management and Signatory Authority", "Key
          Personnel' and "Ownership Interests', are in repeated disagreement
          among each other and those disagreements seriously endanger the
          fulfillment Of this Agreement; or

     (vii) DISTRIBUTOR or any of its Authorized Resellers is in breach Of its
          obligations under the Trade and Service Marks Licensing Clauses as per
          ANNEX 7.

(4)  In addition to the events described in Clauses (2) and (3)above and
     anywhere else in this Agreement, smart gmbh or DaimlerChrysler AG may
     terminate this Agreement by notice to

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     DISTRIBUTOR with immediate effect if DISTRIBUTOR is in breach of its
     obligations under the Option Agreement Clauses.

14.3 NOTIFICATION

Either Party shall notify the other Party immediately, if any event entitling
the other Party to terminate this Agreement occurs.

14.4 RIGHTS AND OBLIGATIONS ON TERMINATION

Upon this Agreement's termination:

(i)  DISTRIBUTOR or its Authorized Resellers will not have any claims of
     compensation for loss of clientele against smart gmbh except as provided
     for in Clause 14.1 (3).

(ii) smart gmbh will not be obliged to compensate DISTRIBUTOR or its Authorized
     Resellers for any other kind of goodwill created by DISTRIBUTOR or its
     Authorized Resellers.

(iii) Except as provided for in Clause 14.1 (3) and in any other agreement in
     writing signed by DISTRIBUTOR and smart gmbh, smart gmbh will not be liable
     to DISTRIBUTOR or to its Authorized Resellers for any other damages by
     reason of smart gmbh exercising any of its rights hereunder, including the
     termination of this Agreement, including statutory or other indemnities,
     irrespective whether the damages result from loss of commitments on leases
     or Other obligations, from loss of investment or present or prospective
     profits, from severance or termination payments to employees or others,
     from inability to meet obligations, or from any other cause.

(iv) DISTRIBUTOR shall immediately, following the effective date of termination,
     stop holding itself out as an authorized distributor of smart gmbh. With
     respect to the use of smart Marks, the regulations of the Trade and Service
     Marks Licensing Clauses as per ANNEX 7 apply.

(v)  As to a termination by smart gmbh under Clause 14.2 DISTRIBUTOR's unfilled
     orders are automatically canceled, unless payment has been made before
     effectiveness of termination or unless smart gmbh specifies otherwise. In
     any case of smart gmbh's termination under Clause 14.2, orders made
     during the last four months of this Agreement will only be accepted upon
     payment of the total order volume in advance. If smart gmbh accepts orders
     or transacts other business with DISTRIBUTOR after termination, the terms
     and conditions of this Agreement will govern such purchases, but smart
     gmbh's acceptance of orders or other business will not renew the Agreement
     or waive its termination, and smart gmbh may at any time after
     effectiveness of termination stop that business with immediate effect.
     Termination does not modify either Party's payment obligations.

(vi) All amounts owed by either Party to the other will be immediately due and
     payable without need for notice, other formality or court order.

(vii) DISTRIBUTOR and its Authorized Resellers shall return to smart gmbh, at
     DISTRIBUTOR's expense to a location mutually agreed upon reasonably
     convenient to both parties, all property and other materials or equipment
     owned by smart gmbh immediately upon termination of this Agreement,
     including any copyrighted materials. In any case DISTRIBUTOR and its
     Authorized Resellers shall grant access to smart gmbh or any of smart
     gmbh's subcontractors to remove without delay all such property and other
     materials or equipment owned by smart gmbh.

(viii) DISTRIBUTOR shall resell to smart gmbh, if so requested by smart gmbh,
     some or all of the Vehicles delivered to DISTRIBUTOR, regardless of the
     circumstances of termination of this Agreement. The repurchase price for
     those Vehicles will their landed cost to DISTRIBUTOR (smart gmbh's invoice
     price plus unrebated duties, taxes and inland transportation costs) less an
     adjustment to reflect any damage other diminution in value not normal for
     new Vehicles being offered for sale at retail at the date of the
     repurchase. In addition, DISTRIBUTOR shall represent and warrant that the
     Vehicles are in its property and that DISTRIBUTOR has all ownership rights

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     without any restrictions or limitations, smart gmbh is entitled to inspect
     the Vehicles at its discretion. In case of any dispute on the condition or
     the price of any Vehicle, smart gmbh is entitled to call an independent
     expert in order to determine the condition of the Vehicle and, if
     necessary, any damage or diminution of its value. The expert's fees shall
     be borne by smart gmbh and DISTRIBUTOR equally.

(ix) smart gmbh shall repurchase from DISTRIBUTOR, if so requested by
     DISTRIBUTOR in writing within a reasonable period, however not later than
     six months after termination of this Agreement, all Parts delivered by
     smart gmbh to DISTRIBUTOR, provided that smart gmbh will not be obliged to
     repurchase Parts from DISTRIBUTOR in case smart gmbh has terminated this
     Agreement in accordance with Article 14.2. smart gmbh will only be obliged
     to repurchase Parts that are unsold, undamaged, unused, in their original
     packaging and stored in a state of the art manner, and appear on smart
     gmbh's then-current Parts' listing. The repurchase price for such Parts
     will be their landed cost to DISTRIBUTOR (smart gmbh's invoice price plus
     unrelated duties, taxes and inland transportation (including transportation
     and insurance) costs) less *% of such cost and less an adjustment to
     reflect any damage or other diminution in value not normal for current
     Parts being offered for sale at retail at the date of the repurchase.
     Together with the request to smart gmbh to repurchase Parts, DISTRIBUTOR
     shall provide a complete list of Parts to be repurchased. The list shall
     contain the relevant Parts number, the invoice number, the dale of invoice
     and the amount of invoice for each of the Parts to be repurchased. In
     addition, DISTRIBUTOR shall represent and warrant that the Parts are in its
     property and that DISTRIBUTOR has all ownership rights without any
     restrictions or limitations, smart gmbh is entitled to inspect the Parts at
     its discretion. In case of any dispute on the condition or the price of any
     Part, smart gmbh shall call an independent expert in order to determine the
     condition of the Part and, if necessary, any damage or diminution of its
     value. The expert's fees shall be borne by smart gmbh and DISTRIBUTOR
     equally.

(x)  smart gmbh may purchase (in which event, DISTRIBUTOR shall sell to smart
     gmbh) some or all of DISTRIBUTOR's special tools and equipment for repair
     or service of Contract Goods and smart gmbh signage owned by DISTRIBUTOR at
     the fair market value of such special tools, equipment and signage.

(xi) DISTRIBUTOR and its Authorized Resellers shall remove all registrations or
     filings of this Agreement and related documents in any public or
     governmental record and must cancel or assign to smart gmbh or its
     designee, as smart gmbh requests, to the extent it can do so by Applicable
     Law, any governmental licenses, permits or authorizations for importation,
     sale or servicing of Contract Goods. DISTRIBUTOR also grants smart gmbh an
     irrevocable power of attorney to take these actions on DISTRIBUTOR's behalf
     if DISTRIBUTOR wrongfully refuses to do so and shall, to the extent it can
     do so by Applicable Law, do any and all things and acts which may be deemed
     necessary or appropriate by smart gmbh in such actions, including
     executing, or making available to smart gmbh, as the case may be, any and
     all relevant documents, instruments, materials or certificates.

(xii) DISTRIBUTOR has no right of retention against any claim of smart gmbh
     under this Article 14, unless the claim on which the right of retention is
     based is uncontested or established by final judgment or arbitral award.

(xiii) In case of termination of this Agreement by smart gmbh, DISTRIBUTOR or
     its Authorized Resellers will not have any claims of compensation against
     smart gmbh except as provided for in this Agreement.

(xiv) The following provisions of this Agreement shall survive termination of
     all or part of this Agreement, and shall continue to be enforceable
     obligations: Articles 1,2 (2), 1.3,3.2, 5.3 (3) (ii), 5.3 (4), 5.5 (2)
     (i), (ii) and (iii), 5.5 (3), 6.2 (9), 6.3, 6.4, 6.6 (2), 6.6 (3), 7.1
     (4), 7.2 (3), 8,2 (4), 9, 11.1, 12.2,13,4 (for a period of five years after
     effectiveness of termination), 13.5,14,15, 16,17, as well as Clauses
     1.1,1.2, 6.1 and 8 of the Trade and Service Marks Licensing Clauses as per
     ANNEX 7. The termination of this Agreement will not affect any rights of
     smart gmbh or any DaimlerChrysler Group Company under any other agreement
     between DISTRIBUTOR and smart gmbh or any DaimlerChrysler Group Company or
     vice versa, except in accordance with the terms

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 31 of 86

<PAGE>

     of such agreement.

ARTICLE 15-GENERAL PROVISIONS

15.1 PAYMENTS TO DISTRIBUTOR

     Any payment to DISTRIBUTOR under this Agreement will be made by wire
     transfer to DISTRIBUTOR's bank account (confirmed in writing by the
     relevant bank) in the Contract Territory;

(1)  In addition, payment will only be made under the condition and to the
     extent that, in the sole discretion of smart gmbh;

     (i)  smart gmbh, at its option, has issued a credit note or has received
          from DISTRIBUTOR a complete, accurate and comprehensible invoice;

     (ii) DISTRIBUTOR has furnished sufficient proof That all preconditions for
          payment have been met;

     (iii) payment is due and legally and practically possible; and

     (iv) DISTRIBUTOR's representations end warranties under Article 13.5 have
          been fulfilled.

(2)  Partial payments will not be made, smart gmbh may combine several payments
     into one single payment.

15.2 ENTIRE AGREEMENT, MODIFICATION, CONSENT, WAIVER, RIGHTS AND ASSIGNMENT

(1)  This Agreement constitutes the Parties' entire agreement for selling and
     servicing Contract Goods in the Contract Territory. It supersedes all prior
     negotiations, understandings and agreements, written or oral, relating to
     its subject matter among DISTRIBUTOR and smart gmbh. Each Party
     acknowledges that no representations or statements other than those
     expressly set forth herein were made by the other or any of its officers,
     employees, agents or representatives, or were relied upon by either Party
     in entering into this Agreement.

(2)  Any modification or supplement to or extension of this Agreement must be in
     writing and signed by authorized officers or representatives of both
     Parties.

(3)  When the consent or approval of a Party is required under this Agreement,
     that consent or approval may be based on such factors, considerations or
     economic interests deemed by that Party to be relevant, regardless of any
     prior exercise of that Party's discretion in similar circumstances, and
     without any duty to justify its exercise of discretion in giving or
     withholding its consent or approval, or in subjecting its consent or
     approval to particular conditions.

(4)  No waiver of a default or other nonperformance or consent will be valid
     unless set forth in writing signed by authorized officers or
     representatives of the Party making the waiver or giving the consent. Any
     such waiver will be applicable solely to that particular default and will
     not be a continuing waiver nor will it excuse any later default, and any
     such consent will be applicable solely to the particular situation for
     which the consent was granted. No failure or delay by any Party in
     exercising any right under this Agreement will operate as or be deemed to
     be a waiver of or limitation on any such right or an implied consent, and
     no single or partial exercise of any such right will preclude any other or
     further exercise of that right or the exercise of any other right.

                                                                   Page 32 of 86

<PAGE>

(5)  Every right and remedy granted by this Agreement is cumulative and in
     addition to every other right and remedy under this Agreement or available
     under any applicable addition to every other right and remedy under this
     Agreement under any Applicable Law.

(6)  Neither Party may assign this Agreement or any of their rights or
     obligations without or in violation of the terms of the other's prior
     consent, and unless the consent states otherwise the assigning Party will
     remain legally obliged, jointly and severally, with its assignee for the
     performance of this Agreement, in the event of any breach of this Clause by
     either Party, the other Party may terminate this Agreement in accordance
     with Article 14.2,

(7)  As an exception to Clause (6) above, smart gmbh may assign this Agreement
     or any other of its rights or obligations and may delegate its performance
     to any DaimlerChrysler Group Company and each Party may assign any of its
     rights to payments due under this Agreement to any entity providing
     factoring or other financing related services. In the event that smart gmbh
     assigns any of its rights or obligations or delegates their performance to
     any DaimlerChrysler Group Company, smart gmbh and such DaimlerChrysler
     Group Company may invoice DISTRIBUTOR separately for Contract Goods and
     related services but smart gmbh shall also remain liable hereunder.

15.3 REGISTRATION

Other than as absolutely required by Applicable Law, DISTRIBUTOR will not
register or file this Agreement or any related documents in any public or
governmental record without the prior consent of smart gmbh.

15.4 CONFIDENTIAL INFORMATION

(1)  Other than as absolutely required by Applicable Law or as consented to by
     smart gmbh in writing, DISTRIBUTOR and its Authorized Resellers, and their
     respective officers, employees and agents shall keep confidential all
     non-public business or technical information relating to smart gmbh, any
     DaimlerChrysler Group Company or any of their respective suppliers or
     customers of which they become aware in connection with this Agreement and
     shall not disclose it except to DISTRIBUTOR's professional advisors.

(2)  smart gmbh will treat as confidential all non-public information concerning
     DISTRIBUTOR which is obtained under this Agreement and will not disclose
     such information to third parties, other than smart gmbh's professional
     advisors.

(3)  This confidentiality obligation under Clauses 15.4 (1) and 15.4 (2),
     however, will not apply to:

     (i)  information that is lawfully known to the other at the time of
          disclosure;

     (ii) Information that is or becomes available in the public domain through
          no fault of the non-disclosing person;

     (iii) information that is or becomes available to the non-disclosing person
          from any third party who was not in breech of any confidentiality
          obligation to the disclosing person or of whose breach of any
          confidentiality obligation to the disclosing person the non-disclosing
          person was not aware; or

     (iv) information that a person is required to disclose by law or court or
          governmental order or request from regulatory authorities.

(4)  Should DISTRIBUTOR receive a request from any person other than an
     authorized service center, dealer or distributor of smart gmbh for
     technical information relating to the repair and maintenance of Contract
     Goods, such request shall be forwarded to smart gmbh for consideration. No
     such information may be disclosed without the prior consent of smart gmbh
     except as required by Applicable Law.

15.5 COUNTERPARTS AND PHOTOCOPIES

This Agreement may be executed in counterparts, each of which will be deemed to
be an original of this Agreement with the same force and effect. A facsimile or
photocopy of a fully executed counterpart of

                                                                   Page 33 of 86

<PAGE>

this Agreement, or of a set of identical versions separately executed by the
Parties, will be valid evidence of the existence and the terms of this
Agreement.

15.6 INTERPRETATION AND DISCREPANCY WITH OTHER DOCUMENTS

(1)  In interpreting this Agreement, the following rules of interpretation will
     apply unless the context requires otherwise:

     (i)  The singular includes the plural, and conversely;

     (ii) A reference to a person includes a company, an unincorporated body or
          other legal entity, and conversely;

     (iii) A reference to a Party to this Agreement or any other agreement or
          document includes that Party's successors and permitted assigns (if
          any);

     (iv) A reference to this Agreement or any other agreement or document is to
          that agreement or document be amended, novated, supplemented, varied
          or replaced from time to time, except to the extent prohibited by this
          Agreement or by that other agreement or document; and

     (v)  "Includes", "including", "in particular" and similar expressions are
          intended to signify examples, and not an exclusive listing, in each
          case as if the words "but not limited to" were part of that
          expression.

(2)  This Agreement was negotiated and concluded in the English language, and
     the English text of this Agreement will be controlling in all events. Both
     Parties have had the opportunity to consult with legal counsel in the
     negotiation of this Agreement, and the fact that smart gmbh prepared the
     initial draft of this Agreement shall not be taken into account in
     interpreting its provisions.

(3)  In the event of any discrepancy or conflict between the terms of this
     Agreement and the terms of any Annex hereto or any document referred to in
     this Agreement or in any Annex hereto, the terms of this Agreement shall
     prevail.

15.7 SEVERABILITY

If a court, arbitral tribunal or government authority having jurisdiction
declares invalid or unenforceable any provision of this Agreement, this
Agreement will be considered divisible as to that provision, and that provision
will be deemed deleted from this Agreement or to be inapplicable, and the
remainder of this Agreement will be valid and binding as if that provision were
not included herein or as if it were included herein only with respect to those
parts of the Contract Territory, if any, where that provision is not invalid or
unenforceable.

ARTICLE 16 -NOTICES

(1)  All notices, applications, requests, approvals, consents, confirmations and
     waivers given under or in connection with this Agreement shall be in
     English, in writing and will be deemed properly given if hand delivered or
     delivered by:

     (i)  prepaid registered or certified mail, return receipt requested;

     (ii) by commercial courier or messenger service; or

     (iii) by facsimile.

(2)  Notices will be deemed given on the first to occur of the following:

     (i)  when actually delivered;

     (ii) if sent by facsimile, when the sender receives an electronic
          confirmation of receipt if promptly followed by a confirmation copy
          given by another permitted method, unless the recipient acknowledges
          receipt of the facsimile; or

     (iii) if sent by mail, five business days after mailing, unless the
          declaration is of particular relevance and unless the addressee proves
          that it has not received the notice.

(3)  Notices shall be delivered to the addresses or facsimile numbers (or to any
     other address or

                                                                  Pages 34 of 86

<PAGE>

     facsimile number that either Party may designate, at any time, to the other
     by notice given in accordance with this Article 16) as set out in ANNEX 2
     under the heading "Notices".

ARTICLE 17 - GOVERNING LAW AND DISPUTE RESOLUTION

(1)  This Agreement is made in and will be construed and governed in all
     respects in accordance with the laws of Germany and without regard to any
     conflicts of law doctrines or principles of German law. If the English
     legal meaning of any term or stipulation in this Agreement or its Annexes
     differs from the German legal meaning, the German legal meaning will
     prevail.

[2)  All disputes, controversies or claims arising from the interpretation,
     performance or non - performance of this Agreement or any and all
     transactions related to this Agreement (including, but not limited to, the
     validity, scope and enforceability of this provision, or disputes under
     rights granted pursuant to law) shall be finally and completely resolved by
     arbitration in accordance with the Rules of Arbitration of the
     International Chamber of Commerce in force at the time of commencement of
     the arbitration. The place of arbitration is Zurich, Switzerland. The
     language to be used in the arbitral proceedings is English.

ARTICLE 18 - PLACE OF PERFORMANCE

With respect to smart gmbh and any other DaimlerChrysler Group Company, place of
performance (as well as place of delivery and place of origination of payment by
smart gmbh) for any and all obligations under this Agreement is Stuttgart,
Germany or Hambach, France.

ARTICLE 19-SIGNATURE

This Agreement has been signed by authorized representatives of smart gmbh and
DISTRIBUTOR effective as of the Effective Date set forth in ANNEX 2 to this
Agreement, under the heading "Effective Date".

SMART GMBH                               SMART USA DISTRIBUTOR LLC

/s/ Ulrich Walker                        /s/ Roger S. Penske
-------------------------------------    ---------------------------------------
Ulrich Walker, President & CEO           Roger S. Penske, Chairman of the Board

/s/ Anders S. Jensen                     /s/ David Schembri
-------------------------------------    ---------------------------------------
Anders S. Jensen,                        David Schembri, President
Vice President Marketing & Sales

                                                                   Page 35 of 86

<PAGE>

                                                                         ANNEX 1

                                    VEHICLES

smart fortwo coupe (C451)
smart fortwo cabrio (A451)

Successor and supplementary models within existing model series will become
Contract Goods upon their official launching in the Contract Territory with the
consent of smart gmbh.

                                                                   Page 36 of 86

<PAGE>

                                                                         ANNEX 2

                    CONTRACT SPECIFICATIONS

I.   CONTRACT TERRITORY

     United States of America and Puerto Rico.

II.  MANAGEMENT AND SIGNATORY AUTHORITY

<TABLE>
<CAPTION>
     NAME         POSITION   JOINT/SEVERAL AUTHORITY
     ----        ---------   -----------------------
<S>              <C>         <C>
Roger Penske     Chairman    Several Authority
David Schembri   President   Several Authority
</TABLE>

III. KEY PERSONNEL

     Roger Penske and David Schembri.

IV.  DESIGNATION

     Distributor for smart gmbh of smart Vehicles in USA and Puerto Rico.

V.   OWNERSHIP INTERESTS

<TABLE>
<CAPTION>
         NAME            PERCENT OWNERSHIP
         ----            -----------------
<S>                      <C>
United Auto Group Inc.         100%
</TABLE>

VI.  OTHER GOODS

VII. EFFECTIVE DATE

     October 31st, 2006.

VIII. NOTICES

If to smart gmbh:                     with duplicate copy to:
smart gmbh                            DaimlerChrysler AG
HPC H100                              L/DS
P.O. Box 20 60                        HPC 096/0431
71010 Boblingen                       70546 Stuttgart
Germany                               Germany
Attention: Vice President Marketing   Attention: International Counsel USA
           & Sales
Facsimile: *                          Facsimile: *

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 37 of 86

<PAGE>

If to DISTRIBUTOR:                    with a duplicate copy to:
smart USA Distributor LLC             United Auto Group, Inc.
2555 Telegraph Road                   2555 Telegraph Road
Bloomfield Hills, Michigan 48302      Bloomfield Hills, Michigan 48302

Attention: President                  Attention: General Counsel
Facsimile: *                          Facsimile: *

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 38 of 86

<PAGE>

                                                                       ANNEX 3.1

                                TARGET AGREEMENT

In accordance with the Distributor Agreement between smart gmbh ("smart gmbh")
and smart USA Distributor LLC ("DISTRIBUTOR") dated October 31st, 2006,
DISTRIBUTOR undertakes to and agrees with smart gmbh to achieve the following
targets during the Sales Period beginning on January 1st, 2008 and ending on
December 31st, 2008 (the "Sales Period"):

*

Any other targets mutually agreed for example, among others, CSI targets, market
share targets, number of outlets.

SMART GMBH                              SMART  USA DISTRIBUTOR LLC

/s/ Ulrich Walker                       /s/ Roger S. Penske
-------------------------------------   ----------------------------------------

Dated: October 31st, 2006

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 39 of 86

<PAGE>

                                                                       ANNEX 3.2

                                      PARTS

The discount for Parts is subject to the discount class ("RG") applicable for
the relevant Part, as designated by DAIMLERCHRYSLER. Currently, the following
discounts apply for the following discount classes;

<TABLE>
<S>             <C>         <C>
General Parts
Discountgroup    *           *
Discountgroup    *           *

Assemblies
Discountgroup    *           *

Special Parts
Discountgroup    *           *

Accessories
Discountgroup    *           *

Special Tools
Discountgroup    *           *
</TABLE>

Discounts are based on the German Wholesales list prices of the DaimlerChrysler
AG valid on the day of delivery.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 40 of 86
<PAGE>

                                                                         ANNEX 4

               FORMAT TYPES, CORPORATE IDENTITY (CI) END STANDARDS

smart gmbh and United Auto Group, Inc, agree to the following matters pertaining
to Format Types, Corporate Identity and Standards, based on Article 5.2 (1) of
the Distributor Agreement made as of October 31st, 2006 by and between smart
gmbh and United Auto Group, Inc.

*

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                              Pps 41 to 50 of 86
<PAGE>

                                     ANNEX 5

                             DISTRIBUTOR'S WARRANTY

                                                                    (SMART LOGO)

                         - MINIMUM WARRANTY CONDITIONS-

Vehicle warranty:                24 months, 24000 miles

Parts & accessories warranty:    24 months, 24000 miles

Corrosion perforation warranty:  48 months. 50000 miles

Any other warranty required by
Applicable Law:                  the warranty terms required Applicable Law

1. DISTRIBUTOR guarantees the fault-free functioning of the motor vehicle for
each motor vehicle type produced by smart gmbh, as set out in the following
conditions. The warranty covers any malfunction of the vehicle due to production
or material faults and for which warranty coverage is not excluded according to
these conditions.

2. The warranty entitles the customer to have the malfunction corrected and the
resulting damage caused to other parts of the vehicle either repaired or
replaced free of charge. Warranty claims can only be asserted at a smart
authorised repairer and must be reported there, accompanied by presentation of
the service booklet. The smart authorised repairer shall decide whether to
repair or replace. Any parts acknowledged as faulty and replaced become the
property of DISTRIBUTOR.

3. DISTRIBUTOR provides warranty on the vehicle as well as on smart replacement
parts and original accessories for a period of 24, months or 24000 miles
(whichever comes first). The criteria for the start of the warranty period are
the delivery date or the date of initial licensing of the vehicle (whichever is
the earlier), and in the case of replacement parts and original accessories, the
date of purchase, smart gmbh additionally grants a 48 months or 50000 miles
(whichever comes first) warranty against corrosion perforation of bodywork from
the inside out.

4. Natural wear and tear, non-warranty adjustment work and normal servicing and
maintenance are excluded from the warranty. Warranty claims also cannot be made
without regard to the contributory causes for malfunctions and damage caused by:

a) influences acting on the vehicle from outside, e.g. of a mechanical or
chemical nature (such as damage to paintwork, synthetics or bodywork caused by
flying stones, fly ash, industrial emissions, bird droppings) or other external
occurrences, including accidents, malicious or willful actions by third parties,
in particular theft and unauthorized use,

                                                                   Page 51 of 86

<PAGE>

b) improper handling or overloading of the vehicle, including non-standard
conditions of use such as off-road driving, racing, overloading, excessive roof,
trailer or axle loads,

c) alteration of the original construction of the vehicle (e.g. tuning),
conversions or alterations of parts, installation of accessories or units from
other manufacturers, the use of which has not been approved by smart gmbh,

d) use of unsuitable lubrication and fuels, or

e) improper storage or damage during transport.

5. A warranty claim only exists if the servicing and maintenance works
prescribed and recommended by DISTRIBUTOR and/or smart gmbh have been carried
out on the vehicle at a smart authorized repairer or by another company
expressly authorized by DISTRIBUTOR to perform such tasks.

6. The warranty does not cover malfunctions and damage which have arisen
because:

a) the vehicle has previously, been serviced, maintained or attended in a garage
other than a smart authorized repairer or an operation authorized by
DISTRIBUTOR, or by a third party that has not been authorized by DISTRIBUTOR for
the specialist and professional maintenance, servicing or upkeep of the vehicle,

b) the operating instructions of the vehicle have not been observed, or

c) a malfunction or damage has not been immediately reported and the vehicle has
not been immediately brought in for repair.

7. The repair of indirect and consequential damage is not covered insofar as it
is not listed under clause 2 above.

8. This warranty does not constitute a basis for claims for cancellation
(annulment of the purchase contract) or reduction (reduction the purchase price)
against DISTRIBUTOR.

9. This warranty is valid exclusively for the territory in which smart gmbh
maintains a distribution network with smart authorized repairers at the date of
the occurrence of the warranty event. If the vehicle is still under warranty and
is in need of repair outside of the DISTRIBUTOR's Contract Territory the
warranty will be the warranty under this Annex 5 and not the warranty generally
applicable outside of the DISTRIBUTOR's Contract Territory.

10. All claims arising from the warranty are barred by the statute of
limitations 6 months after receipt of the damage report at the smart authorized
repairer in accordance with clause 2 above, but at the latest 30 months (in the
case of the corrosion perforation warranty, 54 months} after delivery of the
vehicle to the customer.

11. The customer has the right, if necessary, to make contractual and legal
warranty claims against the seller of the vehicle, irrespective of and in
addition to claims under this warranty.

                                                                   Page 52 of 86
<PAGE>

                                                                         ANNEX 6

                                SALES CONDITIONS

                                                                    (SMART LOGO)

TERMS AND CONDITIONS FOR THE SALE OF BRAND-NEW VEHICLES ABROAD

Exclusively applicable to sales by smart gmbh to foreign business persons who in
concluding the contract of sale are acting in a commercial or independent
professional capacity, and to public authorities abroad.

I.   SCOPE OF CONDITIONS

1.   The contract of sale shall be governed exclusively by these Terms and
     Conditions of Sale. Conflicting terms of the Buyer shall not apply.

2.   These terms and conditions of sale apply to the sale of brand new vehicles
     of the smart brand to business persons domiciled outside the Federal
     Republic of Germany, who in concluding the contract of sale are acting in a
     commercial or independent professional capacity, and to foreign public
     authorities and foreign publicly-owned legal entities.

II.  CONCLUSION OF THE CONTRACT, AMENDMENTS TO THE CONTRACT AND ASSIGNMENT

1.   Offers of the Seller are not binding.

2.   The Buyer shall be bound by the order for a period not exceeding six
     weeks, in the case of vehicles which are in stock at the Seller's, for up
     to two weeks. The contract of sale is concluded when within this period the
     Seller confirms in writing or by electronic mail the acceptance of the
     order for the objects of sale described in more detail or, if the order is
     to be processed in an electronic data processing system (EDP system), at
     the time when the Buyer can see in the EDP system that the Seller has begun
     processing the order (e.g. Progress Code 15 in smart EDP system). In any
     event, the contract of sale shall be concluded when delivery has been made.
     The Seller shall be obliged to inform the Buyer without delay if it does
     not accept the order.

3.   Amendments or addenda to the contract and oral statements must be in
     writing or by electronic mail or, if the order is being processed in an EDP
     system, the Seller must have taken, them into account in a way that is
     apparent to the Buyer.

4.   During the delivery period, the manufacturer's right to make design or
     shape modifications, to deviate from the color shade and make changes to
     the scope of delivery is reserved, provided that the Buyer can reasonably
     be expected to accept such changes or deviations, taking the interests of
     the Seller into account.

                                                                   Page 53 of 86

<PAGE>

     The Buyer cannot derive any rights from any marks or numbering used by the
     Seller or the manufacturer to identify the order or the objects of sale
     ordered. Only the order number used by the Seller is relevant for any
     correspondence between the parties.

5.   The rights and duties of the Buyer arising from the contract of sale may
     not be transferred without the Seller's consent in writing or by electronic
     mail.

III. DELIVERY AND PRICES

1.   Delivery shall be made "CIF USA port", smart gmbh will cover the costs for
     transportation to USA VPC within, a maximum of 100 miles distance from the
     respective sea port, provided DISTRIBUTOR uses a VPC for Vehicles within
     those 100 miles distance.

2.   Partial deliveries are permitted, insofar as the Buyer can be reasonably
     expected to accept them.

3.   The Seller does not accept a no-fault procurement risk for the objects of
     sale.

4.   In cases where an object of sale cannot be delivered on the scheduled
     delivery date due to the discontinuation of series production, both parties
     shall be released from the obligations under the contract of sale insofar
     as this object of sale is concerned. In such a case the Seller shall inform
     the Buyer without delay and reimburse any counter - performance received
     without delay. In such a case the Seller shall not be obliged either to
     deliver the originally ordered object of sale or to pay damages.

5.   Prices are understood, unless any other stipulations have been made, ex
     works net plus cost for logistics, transportation and insurance.

6.   Shipment within the European Economic Area shall be made d.d.u. [.....].
     All other shipment shall be made f.o.b. Baltic Sea Port, Federal Republic
     of Germany, or c.i.f, (port of entry), at the Seller's choice.

IV.  PAYMENT, DELAY IN PAYMENT AND OFFSETTING

1.   The purchase price and prices for incidental services shall be payable less
     any agreed discounts upon delivery of the objects of sale and submission of
     the invoice or other means of rendering account. On a monthly basis smart
     gmbh will reimburse DISTRIBUTOR for the difference between DISTRIBUTOR
     paying smart gmbh for Vehicles based upon 'net 15 days ex works' credit
     terms and DISTRIBUTOR paying smart gmbh for those Vehicles based upon
     delivery at USA VPC if USA VPC is used and is within 100 miles distance
     from USA port or, if not used, the USA port or another mutually agreed
     method.

2.   Payment must be made in the currency specified on the invoice and in such a
     way that the Seller does not incur any costs.

                                                                   Page 54 of 86

<PAGE>

3.   Should the Buyer default on payment, including with respect to individual
     invoices, the Seller shall be entitled to demand payment in advance for
     consignments in transit and subsequent deliveries from all ongoing
     contracts.

4.   The Buyer may offset claims of the Seller only if the Buyer's counterclaim
     is uncontested or has been confirmed by a non-appealable court decision. A
     right of retention may only be exercised insofar as it relates to claims
     arising from the contract of sale.

V.   DELIVERY TIME, DELAY IN DELIVERY AND FORCE MAJEURE

1.   Delivery dates and delivery periods which may be agreed as either binding
     or non-binding are to be stated in writing or by electronic mail. Where
     orders are being processed in an EDP system, a delivery date or a delivery
     period shall be deemed to have been agreed if the Seller has taken it into
     account in a way that is apparent to the Buyer. Delivery periods shall
     commence upon conclusion of the contract.

2.   The Buyer may demand delivery six weeks after a non-binding delivery date
     or a non-binding delivery period has been exceeded. The Seller is in delay
     from the time that it receives this demand. If the Buyer wishes to
     withdraw from the contract and/or claim damages in lieu of performance, it
     must set for the Seller a reasonable period within which to effect delivery
     after the end of the six-week period pursuant to sentence 1. The Buyer
     shall not be entitled to seek damages in the event of slight negligence on
     the part of the Seller.

     If performance becomes impossible for the Seller by coincidence while it is
     in delay, the Seller shall be liable within the scope of the limitations on
     liability agreed above. The Seller shall not be liable if the damage would
     have been incurred even if the delivery had been made on time.

3.   If a binding delivery date or binding delivery period is exceeded, the
     Seller is in delay as soon as the delivery date or delivery period is
     exceeded. The rights of the Buyer shall then be determined by clause 2
     sentences 3 to 6 of this section.

4.   In the event that the Seller is temporarily prevented from delivering at
     the agreed time or within the agreed period through no fault of its own,
     due to force majeure. or operational disruptions occurring at the Seller's
     or its suppliers', the dates and periods referred, to in clauses 1 to 3
     shall be extended by the duration of the impairment of performance. The
     same shall apply if not all permits have been granted or not all documents,
     payments, securities, transport containers and means of transport to be
     provided by the Buyer have been received by the Seller on time. If
     disruptions pursuant to sentence 1 result in performance being postponed by
     more than four months, both Seller and Buyer shall be entitled to withdraw
     from the contract. This shall not prejudice other rights to withdraw from
     the contract.

VI.  ACCEPTANCE AND DELAY OF THE BUYER

                                                                   Page 55 of 86

<PAGE>

1.   The Buyer is obliged to accept the objects of sale within 30 days of
     receiving notice of readiness for delivery or, where orders are being
     processed in an EDP system, within 30 days of the time at which the Buyer
     can see in the EDP system that the objects of sale are ready for delivery.
     In the absence of either a notice of readiness for delivery or a processing
     of the orders in an EDP system, the Buyer is obliged to accept the objects
     of sale within 30 days following the end of the month for which delivery
     was agreed upon, unless the Seller is in delay of delivery.

2.   Should the Buyer fail to accept the objects of sale, the Seller may
     exercise its statutory rights. The same applies if the Seller is unable to
     deliver because the Buyer has failed to supply the permits, documentation,
     payments, securities, transport containers or means of transport which it
     is required to provide or it does not assume transportation for which it is
     responsible. In the event of non-acceptance, the Seller is also entitled to
     send the items to the Buyer at the latter's expense and risk.

3.   Should the Seller seek damages, such damages shall amount to *% of the
     agreed purchase price. This amount may be increased if the Seller is able
     to prove greater damage or reduced if the Buyer can prove that the damage
     was lower.

VII. RESERVATION OF TITLE

1.   The objects of sale shall remain the property of the Seller until such
     time as the claims accruing to the Seller by virtue of the contract of
     sale have been settled. The reservation of title also applies to claims
     acquired by the Seller against the Buyer arising from the ongoing business
     relationship until such time as the claims of the Seller in connection with
     the sale have been settled.

2.   Any processing or modification of the reserved-title goods by the Buyer or
     a third party or the combination of such goods with other goods shall be
     for the Seller. The Seller shall acquire co-ownership of the newly created
     products which are deemed to be reserved-title goods within the meaning of
     this Section VII, such that its share of the new products corresponds to
     the value of the originally supplied objects of sale.

3.   The Seller consents to the resale of the reserved-title goods by the Buyer
     within the scope of its ordinary course of business; such consent being
     revocable and subject to the provisions of clause B. The Buyer may not
     pledge the reserved-title goods or assign them by way of security. To
     secure all claims arising from the ongoing business relationship, the Buyer
     assigns to the Seller its claims from the resale of the reserved-title
     goods in the amount of the Seller's claim to the purchase price.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 56 of 86

<PAGE>

     Until its authorization is revoked, the Buyer is entitled and obliged to
     collect the debts assigned to the Seller. Should the Buyer suspend payments
     generally, this collection authorisation shall end without the need for
     explicit revocation.

4.   At the request of the Buyer, the Seller shall release the security provided
     in accordance with the foregoing provisions - at its discretion - insofar
     as the realizable value of this security exceeds the claims to be secured
     arising from the ongoing business relationship by *%.

5.   The Buyer is obliged to carefully look after the reserved-title goods for
     the Seller, to keep them in perfect technical condition and to have any
     necessary repairs carried out without delay. The reserved-title goods are
     to be serviced and repaired in workshops expressly approved by the
     manufacturer for the servicing of the objects of sale, except in cases of
     emergency.

6.   As long as reservation of title remains in force, the Buyer shall be
     required at the demand of the Seller to insure the reserved-title goods
     with all-risk cover at their value as new or in the amount of the
     outstanding claim, with the proviso that the rights arising from the
     insurance accrue to the Seller. The Seller shall be entitled to demand the
     insurance certificate.

7.   In the event of attachment or of other impediments to the owner's
     interests, the Buyer shall inform the Seller without delay.

8.   Should the Buyer fail to meet its payment and insurance obligations or
     other obligations arising from the reservation of title including the
     assignment of debts, or suspend payments in general, or should insolvency
     proceedings be instituted in respect of its assets or, as a result of the
     conduct of the Buyer, notification from the insurer provided for in the
     insurance certificate is sent to the Seller, the full outstanding balance
     shall fall due immediately, even if bills of exchange with later maturity
     dates are running, and any right of the Buyer to dispose of the
     reserved-title goods pursuant to clause 3 shall lapse. If the full
     outstanding balance is not paid immediately, the right of the Buyer to use
     the reserved-title goods shall lapse. The Seller shall be entitled after
     the expiration of a 14-day period of grace granted by it, or, in the event
     of the Buyer suspending payments in general or insolvency proceedings being
     instituted, immediately, to demand the restitution of the reserved-title
     goods excluding any right of retention, and to collect them from the Buyer.
     Such action shall not require cancellation of the contract; the demand for
     restitution and collection of the reserved-title goods shall not constitute
     a withdrawal from the contract.

     The repossession by the Seller of reserved-title goods in which third
     parties have co-ownership rights shall also constitute repossession for the
     co-owners. The Buyer shall be liable for all costs incurred in connection
     with repossession and realization of the value of the reserved-title goods.
     Notwithstanding the payment obligation of the Buyer, the Seller is entitled
     - where applicable by agreement with the co-owners -

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 57 of 86

<PAGE>

     to realize the value of the repossessed reserved-title goods and
     accessories at the beat price through sale on the open market or by public
     auction. The proceeds after deduction of costs will, insofar as they are
     not owed to the Seller or a third party to cover existing claims, be paid
     to the Buyer.

9.   If the country in whose territory the objects of sale are located does not
     permit reservation of title, but does permit the Seller to reserve other
     rights to the objects of sale, the Seller may exercise all such rights. The
     Buyer is obliged to take at its own expense all steps which are necessary
     to enable the reservation of title or other substitute right over the
     objects of sale to take effect and to be maintained.

VIII. DEFECTS

1.   Claims of the Buyer on grounds of defects in passenger cars shall become
     time-barred as provided by statutory provisions after two years from the
     date when the object of sale concerned was first registered or brought into
     service, depending an which came first, but no later than 30 months after
     delivery of the object of sale concerned unless otherwise agreed in the
     clauses below.

2.   In the event of malicious non-disclosure of defects or of a guarantee given
     for quality, claims over and above those set forth in clause 1 remain
     unaffected.

3.   The end purchaser may assert its claims for rectification of defects
     against the party which sold the object of sale concerned to it or against
     other workshops approved by the manufacturer for the servicing of the
     objects of sale. The Buyer must notify the Seller in each event as soon as
     it becomes aware of such claims being asserted. The Buyer shall have no
     recourse against the Seller in respect of claims far subsequent performance
     and withdrawal from the contract. Instead, the Seller shall reimburse the
     Buyer in respect of the costs necessitated by the subsequent performance or
     the damage incurred through exclusion of the right of withdrawal, less any
     expenses saved and income received in connection with any other use of or
     benefit obtained from the object of sale concerned.

4.   If a defect renders an object of sale unusable, the nearest available
     workshop to the unusable object of sale which has been approved by the
     manufacturer for the servicing of the objects of sale shall be informed.

5.   Replaced objects of sale or parts thereof shall be kept for the purpose of
     inspection by the Seller at a place specified by the Seller and returned to
     it upon request. Should the claims for defects prove to be justified, the
     items shall become the property of the Seller and the Seller shall bear the
     costs of their return.

6.   Claims for defects relating to the parts used to remedy defects may be
     asserted on the basis of the contract of sale until the end of the
     limitation period for the object of sale concerned.

                                                                   Page 58 of 86

<PAGE>

7.   A change in ownership of the objects of sale will not affect claims for the
     rectification of defects.

X.   LIABILITY

1.   If the Seller is to be held responsible under the statutory provisions in
     accordance with these terms and conditions for damage caused by slight
     negligence, the liability of the Seller shall be limited as follows:

     The Seller shall be liable only for the breach of obligations essential to
     the contract and its liability shall be limited to the typical damage which
     was foreseeable at the time the contract was concluded. This limitation
     shall not apply in the event of injury to life, limb or health. So far as
     the damage is covered by insurance taken out by the Buyer for the
     respective damaging event (excluding fixed-sum insurance), the Seller shall
     only he liable for any associated disadvantage suffered by the Buyer e.g.
     increased insurance premiums or the cost of interest until such time as the
     claim is settled by the insurer.

     The Seller shall not be held liable for damage caused by slight negligence
     through a defect in an object of sale.

2.   Regardless of the issue of fault, this shall not prejudice the liability of
     the Seller in the event of malicious non-disclosure of a defect, or if the
     Seller has provided a guarantee or accepted a procurement risk, or under
     the terms of the German Product Liability Act.

3.   Liability in the event of delay in delivery is governed conclusively by the
     provisions of Section V.

4.   The legal representatives, vicarious agents and employees of the Seller
     shall bear no personal liability for damage caused by slight negligence on
     their part.

XI.  PLACE OF PERFORMANCE, JURISDICTION AND APPLICABLE LAW

1.   The place of performance for delivery of the objects of sale shall be the
     manufacturing plant.

2.   Should any provision of these terms end conditions and of the other
     agreements made be or become invalid, this shall not affect the validity of
     the contract in any other respect. The parties to the contract undertake to
     replace the invalid provision with a provision that accords most closely in
     terms of its commercial effects.

3.   The courts of Stuttgart shall have exclusive jurisdiction over all present
     and future claims arising from the business relationship between the Seller
     and the Buyer, including claims based on bills of exchange or checks. The
     Seller is also entitled to sue at the domicile of the Buyer.

4.   The contract is governed by German law. INCOTERMS 2000 shall apply. The
     United Nations Convention on the International Sale of Goods dated April
     11, 1980 shall not apply.

                                                                   Page 59 of 86

<PAGE>

                                                                    (SMART LOGO)

TERMS AND CONDITIONS OF SALE FOR PARTS, COMPONENTS AND ACCESSORIES ABROAD

Exclusively applicable to sales by or on behalf of smart gmbh to foreign
business persons who in concluding the contract of sale are acting in a
commercial or independent professional capacity, and to public authorities
abroad.

I.   SCOPE OF APPLICATION

1.   The contract of sale shall be governed exclusively by these Terms and
     Conditions of Sale. Conflicting terms of the Buyer shall not apply.

2.   These terms and conditions of sale apply to the sale of new and
     reconditioned original smart parts and components, and vehicle accessories
     to business persons domiciled outside the Federal Republic of Germany who,
     in concluding the contract of sale, are acting in a commercial or
     independent professional capacity, and to foreign public authorities and
     foreign publicly-owned legal entities.

II.  CONCLUSION OF THE CONTRACT, AMENDMENTS TO THE CONTRACT AND ASSIGNMENT

1.   Offers of the Seller are not binding.

2.   The Buyer shall be bound by the order for a period not exceeding four
     weeks. The contract of sale is concluded when within this period the Seller
     confirms in writing or by electronic mail the acceptance of the order for
     the objects of sale described in more detail or, if the order is to be
     processed in an electronic data processing system (EDP system), at the
     time when the Buyer can see in the EDP system that the Seller has begun
     processing the order. In any event, the contract of sale shall be concluded
     when delivery has been made. The Seller shall be obliged to inform the
     Buyer without delay if it does not accept the order.

3.   Amendments or addenda to the contract and oral statements must be in
     writing or by electronic mail, or, if the order is being processed in an
     EDP system, the Seller must have taken them into account in a way that is
     apparent to the Buyer.

4.   During the delivery period, the manufacturer's right to make design or
     shape modifications, to deviate from the color shade and make changes to
     the scope of delivery is reserved, provided that the Buyer can reasonably
     be expected to accept such changes or deviations, taking the interests of
     the Seller into account.

     The Buyer cannot derive any rights from any marks or numbering used by the
     Seller or the manufacturer to identify the order or the objects of sale
     ordered.

5.   The rights and duties of the Buyer arising from the contract of sale may
     not be transferred without the Seller's consent in writing or by electronic
     mail.

                                                                   Page 60 of 86

<PAGE>

III. DELIVERY AND PRICES

1.   Delivery shall be made "exw factory delivery store".

2.   Partial deliveries are permitted, insofar as the Buyer can be reasonably
     expected to accept them.

3.   The Seller does not accept a no-fault procurement risk for the objects of
     sale.

4.   In cases where any objects of sale cannot be delivered on the scheduled
     delivery date due to the discontinuation of series production, both
     parties shall be released from the obligations under the contract of sale
     insofar as these objects of sale are concerned. In such a case the Seller
     shall inform the Buyer without delay and reimburse any counter-performance
     received without delay. In such a case, the Seller shall not be obliged
     either to deliver the originally ordered objects of sale or to pay damages.

5.   The purchase price comprises the export list price valid on the delivery
     date plus any value-added tax applicable on the delivery data.

IV.  PAYMENT, DELAY IN PAYMENT AND OFFSETTING

1.   The purchase price and prices for incidental services shall be payable less
     any agreed discounts upon delivery of the objects of sale and submission of
     the invoice or other means of rendering account. Payments for parts shall
     be mutually agreed upon based upon the principal that smart gmbh shall not
     be conducting business in the United States.

2.   Payment must be made in the currency specified on the invoice and in such a
     way that the Seller does not incur any costs.

3.   Should the Buyer default on payment, including with respect to individual
     invoices, the Seller shall be entitled to demand payment in advance for the
     consignments in transit and subsequent deliveries from all ongoing
     contracts.

4.   The Buyer may offset claims of the Seller only if the Buyer's counterclaim
     is uncontested or has been confirmed by a non- appealable court decision. A
     right of retention may only be exercised insofar as it relates to claims
     arising from the contract of sale.

V.   DELIVERY TIME, DELAY IN DELIVERY AND FORCE MAJEURE

1.   Delivery dates and delivery periods which may be agreed as either binding
     or non-binding are to be stated in writing or by electronic mail. Where
     orders are being processed in an EDP system, a delivery date or a delivery
     period shall be deemed to have been agreed if the Seller has taken it into
     account in a way that is apparent to the Buyer. Delivery periods shall
     commence upon conclusion of the contract.

                                                                   Page 61 of 86
<PAGE>

2.   The Buyer may demand delivery six weeks after a non-binding delivery date
     or a non-binding delivery period has been exceeded. The Seller is in delay
     from the time that it receives this demand. If the Buyer wishes to withdraw
     from the contract and/or claim damages in lieu of performance, it must set
     for the Seller a reasonable period within which to effect delivery after
     the end of the six-week period pursuant to Sentence 1. The Buyer shall not
     be entitled to seek damages in the event of slight negligence on the part
     of the Seller.

     If performance becomes impossible for the Seller by coincidence while it is
     in delay, the Seller shall be liable within the scope of the limitations
     on liability agreed above. The Seller shall not be liable if the damage
     would have been incurred even if delivery had been made on time.

3.   If a binding delivery date or binding delivery period is exceeded, the
     Seller is in delay as soon as the delivery date or delivery period is
     exceeded. The rights of the Buyer shall then be determined by clause 2
     sentences 3 to 6 of this section.

4.   In the event that the Seller is temporarily prevented from delivering at
     the agreed time or within the agreed period through no fault of its own,
     due to force majeure or operational disruptions occurring at the Seller's
     or its suppliers', the dates and periods referred to in clauses 1 to 3
     shall be extended by the duration of the impairment of performance. The
     same shall apply if not all permits have been granted or not all
     documents, payments, securities, transport containers and means of
     transport to be provided by the Buyer have been received by the Seller on
     time. If disruptions pursuant to sentence 1 result in performance being
     postponed by more than four months, both Seller and Buyer shall be
     entitled to withdraw from the contract. This shall not prejudice other
     rights to withdraw from the contract.

VI.  ACCEPTANCE AND DELAY OF THE BUYER

1.   The Buyer is obliged to accept the objects of sale without delay upon
     receiving notice of readiness for delivery or, where orders are being
     processed in an EDP system, without delay from the time when the Buyer can
     See in the EDP system that the objects of sale are ready for delivery. In
     the absence of either a notice of readiness for delivery or a processing of
     the orders in an EDP system, the Buyer shall accept the objects of sale
     without delay from the date upon which delivery was agreed, unless the
     Seller is in delay of delivery.

2.   Should the Buyer fail to accept the objects of sale, the Seller may
     exercise its statutory rights. The same applies if the Seller is unable to
     deliver because the Buyer has failed to supply the permits, documentation,
     payments, securities, transport containers or means of transport which it
     is required to provide or it does not assume transportation for which it is
     responsible. In the event of non-acceptance, the Seller is also entitled to
     send the objects of sale to the Buyer at the latter's expense and risk.

                                                                   Page 62 of 86

<PAGE>

3.   Should the Seller seek damages, such damages shall amount to *% of the
     agreed purchase price. This amount may be increased if the Seller is able
     to prove greater damage, or reduced if the Buyer can prove that the damage
     was lower.

VII. RESERVATION OF TITLE

1.   The objects of sale shall remain the property of the Seller until such time
     as the claims accruing to the Seller by virtue of the contract of sale have
     been settled. The reservation of title also applies to claims acquired by
     the Seller against the Buyer arising from the ongoing business relationship
     until such time as the claims of the Seller in connection with the sale
     have been settled.

2.   Any processing or modification of the reserved-title goods by the Buyer or
     a third party or the combination of such goods with other goods shall be
     for the Seller. The Seller shall acquire co-ownership of the newly created
     products which are deemed to be reserved-title goods within the meaning of
     this Section VII, such that its share of the new products corresponds to
     the value of the objects of sale.

3.   The Seller consents to the resale by the Buyer of the goods in which title
     is reserved within the scope of its ordinary course of business; such
     consent being revocable and subject to the provisions of clause 8. The
     Buyer may not pledge the reserved- title goods or assign them by way of
     security. To secure all claims arising from the ongoing business
     relationship, the Buyer assigns to the Seller its claims from the resale of
     the reserved-title goods in the amount of the Seller's claim to the
     purchase price.

     Until its authorization is revoked, the Buyer is entitled and obliged to
     collect the debts assigned to the Seller. Should the Buyer suspend
     payments generally, this collection authorization shall end without the
     need for explicit revocation.

4.   At the request of the Buyer, the Seller shall release the security
     provided in accordance with the foregoing provisions - at its discretion -
     insofar as the realizable value of this security exceeds the claims to be
     secured arising from the ongoing business relationship by *%.

5.   The Buyer is obliged to carefully look after the reserved-title goods for
     the Seller, to keep them in perfect technical condition and to have any
     necessary repairs carried out without delay. The reserved-title goods are
     to be serviced and repaired in workshops expressly approved by the
     manufacturer for the servicing of the objects of sale, except in cases of
     emergency.

6.   AS long as reservation of title remains in force, the Buyer shall be
     required at the demand of the Seller to insure the reserved-title goods
     with all-risk cover at their value as new or in the amount of the
     outstanding claim, with the proviso that the rights arising from the
     insurance accrue to the Seller. The Seller shall be entitled to demand the
     insurance certificate.

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 63 of 86

<PAGE>

7.   In the event of attachment or of other impediments to the owner's
     interests, the Buyer shall inform the Seller without delay.

8.   Should the Buyer fail to meet its payment and insurance obligations or
     other obligations arising from the reservation of title including the
     assignment of debts, or suspend payments in general or should insolvency
     proceedings be instituted in respect of its assets or, as a result of the
     conduct of the Buyer, notification from the insurer provided for in the
     insurance certificate is sent to the Seller, the full outstanding balance
     shall fall due immediately, even if bills of exchange with later maturity
     dates are running, and any right of the Buyer to dispose of the
     reserved-title goods pursuant to clause 3 shall lapse. If the full
     outstanding balance is not paid immediately, the right of the Buyer to use
     the reserved-title goods shall lapse. The Seller shall be entitled after
     the expiration of a 14-day period of grace granted by it, or, in the event
     of the Buyer suspending payments in general or insolvency proceedings being
     instituted, immediately, to demand the restitution of the reserved-title
     goods excluding any right of retention and to collect them from the Buyer.
     Such action shall not require cancellation of the contract; the demand for
     restitution and collection of the goods in which title is reserved shall
     not constitute a withdrawal from the contract.

     The repossession by the Seller of reserved-title goods in which third
     parties have co-ownership rights shall also constitute repossession for the
     co-owners. The Buyer shall be liable for all costs incurred in connection
     with the repossession and realization of the value of the reserved-title
     goods. Notwithstanding the payment obligation of the Buyer, the Seller is
     entitled - where applicable by agreement with the co-owners - to realize
     the value of the repossessed reserved-title goods and accessories at the
     best price through sale on the open market or by public auction. The
     proceeds after deduction of costs will, insofar as they are not owed to the
     Seller or a third party to cover existing claims, be paid to the Buyer.

9.   If the country in whose territory the objects of sale are located does not
     permit reservation of title, but does permit the Seller to reserve other
     rights to the objects of sale, the Seller may exercise all such rights. The
     Buyer is obliged to take at its own expense all steps which are necessary
     to permit the reservation of title or other substitute right over the
     objects of sale to take effect and to be maintained.

VIII. INSTALLATION

Any installation of the objects of sale undertaken by the Buyer shall be on the
Buyer's own responsibility. The Buyer must ensure compliance with the
installation instructions and guidelines for storage of the objects of sale.

IX.  DEFECTS

1.   Claims of the Buyer on grounds of defects in parts, components or
     accessories intended to be installed in passenger cars shall

                                                                   Page 64 of 86
<PAGE>

     expire as provided by statutory provisions after two years from the date of
     delivery of the object of sale concerned unless otherwise agreed in the
     clauses below.

2.   In the event of malicious non-disclosure of defects or of a guarantee given
     for quality, claims over and above those set forth in clause 1 remain
     unaffected.

3.   The end purchaser may assert its claims for rectification of defects
     against the party which sold the object of sale concerned to it or against
     other workshops approved by the manufacturer for the servicing of the
     objects of sale. The Buyer must notify the Seller in each event as soon as
     it becomes aware of such claims being asserted. The Buyer shall have
     no recourse against the Seller with respect to claims for subsequent
     performance and withdrawal from the contract. Instead, the Seller shall
     reimburse the Buyer with respect to the costs necessitated by subsequent
     performance or the damage incurred through exclusion of the right of
     withdrawal, less any expenses saved and income received in connection with
     any other use of or benefit obtained from the object of sale concerned.

4.   Replaced objects of sale or parts thereof shall be kept for the purpose of
     inspection by the Seller at a place specified by the Seller, and returned
     to it upon its request. Should the claims for defects prove to be
     justified, such parts shall become the property of the Seller and the
     Seller shall bear the costs of their return.

5.   Claims for defects relating to the parts used to remedy defects may be
     asserted on the basis of the contract of sale until the end of the
     limitation period for the object of sale concerned.

6.   A change in ownership of the objects of sale will not affect claims for the
     rectification of defects.

X.   LIABILITY

1.   If the Seller is to be held responsible under the statutory provisions in
     accordance with these terms and conditions for damage caused by slight
     negligence, the liability of the Seller shall be limited as follows:

     The Seller shall be liable only for the breach of obligations essential to
     the contract and its liability shall be limited to the typical damage which
     is foreseeable at the time the contract was concluded. This limitation
     shall not apply in the event of injury to life, limb or health. Insofar as
     the damage is covered by insurance taken out by the Buyer for the
     respective damaging event (excluding fixed-sum insurance), the Seller shall
     only be liable for any associated disadvantage suffered by the Buyer e.g,
     increased insurance premiums or the coat of interest until such time as the
     claim is settled by the insurer.

     The Seller shall not be held liable for damage caused by slight negligence
     through a defect in an object of sale.

                                                                   Page 65 of 86

<PAGE>

2.   Regardless of the issue of fault, this shall not prejudice the liability of
     the Seller in the event of malicious non-disclosure of a defect, or if the
     Seller has provided a guarantee or accepted a procurement risk or under the
     terms of the German Product Liability Act.

3.   Liability in the event of delay in delivery is governed, conclusively by
     the provisions of Section V.

4.   The legal representatives, vicarious agents and employees of the Seller
     shall bear no personal liability for damage caused by slight negligence on
     their part.

XI.  GENERAL

1.   Place of performance for the delivery of the objects of sale shall be the
     Seller's store.

2.   Should any provision of these terms and conditions and of the other
     agreements made be or become invalid, this shall not affect the validity of
     the contract in any other respect. The parties to the contract undertake to
     replace the invalid provision with a provision that accords most closely in
     terms of its commercial effects.

3.   The courts of Stuttgart shall have exclusive jurisdiction over all present
     and future claims arising from the business relationship between the Seller
     and the Buyer, including claims based on bills of exchange or checks. The
     Seller is also entitled to sue at the domicile of the Buyer.

4.   The contract is governed by German law. INCOTERMS 2000 shall apply. The
     United Nations convention on the International Sale of Goods dated April
     11, 1980 shall not apply.

                                                                   Page 66 of 86

<PAGE>

                                    ANNEX 7

                   TRADE AND SERVICES MARKS LICENSING CLAUSE

1.   SMART MARKS

1.1  Smart gmbh is the proprietor of the  following trade and service  marks in
     the Contract Territory ("smart Marks") and their applications and
     registrations:

     Serial No. 74/734869 SMART (word mark) in international class 12

     Registration No. 2837584 SMART (word mark) in international class 37

     Registration No. 2927097 (smart-ring device) in international classes 12
     and 37

                                     (LOGO)

1.2  The smart Marks are and remain the property of smart gmbh. This property
     right shall neither be prejudiced by these Trade and Service Marks
     Licensing Clauses, nor by the Distributor Agreement, nor by any other
     agreement between the Parties.

1.3  The smart Marts are subject of these Trade and Service Marks Licensing
     Clauses, unless their protection period in the Contract Territory has
     expired, smart gmbh does not accept any liability for the validity of the
     smart Marks or the right to use the smart Marks, other than the use of the
     smart Marks on Contract Goods.

1.4  If smart gmbh adds, modifies, replaces or amends marks used by its
     distribution partners, Annex 8 will be amended accordingly.

2.   RIGHT OF USE OF SMART MARKS FOR CONTRACT GOODS

2.1  smart gmbh hereby grants to DISTRIBUTOR the right of non-exclusive use of
     the smart Marks for sales and services in relation to Contract Goods in the
     Contract Territory. During the duration of the Distributor Agreement smart
     gmbh warrants not to grant any third party any right to use the smart Marks
     in the context of sale and service of Contract Goods in the Contract
     Territory according to the Distributor Agreement.

2.2  DISTRIBUTOR is obliged to use the smart Marks on all documents,
     CI-elements, stationary and advertisements relating to Contract Goods.

2.3  The use of The smart Marks by DISTRIBUTOR shall be made only in the
     positions and in the form and manner determined by smart gmbh. Other marks
     or designations must not be used by DISTRIBUTOR in connection with Contract
     Goods.

2.4  If DISTRIBUTOR intends to perform other services than those set forth in
     the Distributor Agreement, the prior written approval of smart gmbh for the
     use of the smart Marks is required. The granting of such approval shall be
     in smart gmbh's sole discretion.

2.5  DISTRIBUTOR is permitted to use the word mark "smart" in the combination
     "smart USA" as an integral part of its company name. All such uses of the
     word Mark "smart" shall inure to the benefit of smart gmbh. DISTRIBUTOR
     hereby assigns and transfers to smart gmbh any and all rights arising of
     such uses except the rights granted by smart gmbh to DISTRIBUTOR under the
     Distributor Agreement.

                                                                   Page 67 of 86

<PAGE>

2.6  The right to use the smart Marks extends to the use of the domain
     www.smartusa.com.  All such use shall inure to the benefit of smart gmbh.
     DISTRIBUTOR hereby assigns and transfers to smart gmbh any and all rights
     arising of such uses except the rights granted by smart gmbh to DISTRIBUTOR
     under the Distributor Agreement.

3.   RIGHT OF USE FOR OTHER PURPOSES

3.1  The use of the smart Marks in the distribution, presentation and in any
     type of advertising practiced by DISTRIBUTOR, such as prospectus, newspaper
     and magazine advertising or advertising by way of posters and any other
     outdoor advertising, must be in compliance with smart gmbh's corporate
     identity guidelines and is subject to regular consultations with smart
     gmbh. Any products with regard to the CI-elements must be procured from
     suppliers that have been recommended by smart gmbh.

3.2  The use of the smart Marks on or in connection with advertising gifts or
     any other general advertising and publicity, including advertising by
     expressly authorized business representatives of DISTRIBUTOR in the
     Contractual Territory, requires the prior written approval of smart gmbh.
     The granting of such consent shall be in smart gmbh's sole discretion.

3.3  The lay-out of any stationery, invoices, or other correspondence depicting
     the smart Marks rust be approved by smart gmbh.

4.   SCOPE OF USE

The use of smart Marks is restricted to the Contract Territory. In case smart
gmbh permits the distribution of Contract Goods into countries outside of the
Contract Territory, the Parties will conclude a separate prior agreement on the
use of the smart Marks in the export country.

5.   FEES AND DEFENSE OF SMART MARKS

5.1  The consideration for the use of the smart Marks is included in the
     purchase prices of Contract Goods and covered by the joint effort of the
     Parties to defend the smart Marks against any violations by third parties
     in the Contract Territory.

5.2  DISTRIBUTOR shall therefore monitor the market with regard to any
     infringements of the smart Marks by third parties and will immediately
     notify smart gmbh of any unlawful use. DISTRIBUTOR will assist smart gmbh
     to the best of its ability in the defense of the smart Marks. No litigation
     or controversy involving the smart Marks shall be initiated or settled
     Without the prior written approval of smart gmbh. All costs of litigation,
     negotiation or settlements concerning collisions of the smart Marks in and
     in relation with the Contract Territory which occur following the execution
     of the Distributor Agreement shall be borne, up to a maximum amount of EUR
     * per calendar year (i.e. EUR * for each Party), equally by the Parties.
     All costs Of litigation, negotiation or settlements concerning collisions
     of the smart Marks which have started before the execution of the
     Distribution Agreement shall he borne by smart gmbh.

     If costs of litigation, negotiation or settlements concerning collisions of
     the smart Marks in and in relation with the Contract Territory exceed EUR *
     per calendar year (i.e. EUR * for both DISTRIBUTOR and smart gmbh each),
     smart gmbh will bear those exceeding costs alone. DISTRIBUTOR shall have no
     rights and/or claims against smart gmbh, should the latter decide not to
     proceed against the breaches.

6.   NON-ASSIGNMENT OF RIGHTS TO THIRD PARTIES

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 68 of 86

<PAGE>

6.1  DISTRIBUTOR shall not be entitled to assign or transfer to any third
     parties any of the rights to use any of the smart Marks.

6.2  As an exception to Clause 6.1 above, DISTRIBUTOR shall with the prior
     written approval of smart gmbh in each single case authorize its Authorized
     Resellers to use the smart Marks in the due course of their business and in
     accordance with the rules and regulations laid down in these Trade and
     Service Marks Licensing Clauses. This right shall be effective during the
     term of the Distributor Agreement only and must be revocable at any time if
     the smart Marks are not used in accordance with the terms of the Trade and
     Service Marks Licensing Clauses.

6.3  DISTRIBUTOR shall include in all subcontracts provisions which will grant
     smart gmbh full protection as is provided for under these Trade and Service
     Marks Licensing Clauses and which will entitle smart gmbh to exercise all
     rights directly against such third parties to the extent that smart gmbh
     deems necessary. Upon third failure of DISTRIBUTOR to abide by the above
     regulations may be construed by smart gmbh as a gross breach of contract.

7.   TERMINATION

7.1  smart gmbh shall have the right to terminate DISTRIBUTOR'S right to use the
     smart Marks upon serving a written notice without need for any further
     legal or judicial action:

     (a)  if any smart Mark is used by DISTRIBUTOR in a manner contrary to these
          Trade and Service Marks Licensing Clauses and if DISTRIBUTOR does not
          discontinue such unauthorized use within thirty (30) days from receipt
          of a request from smart gmbh demanding discontinuation;

     (b)  if any smart Mark is used by any Authorized Reseller of DISTRIBUTOR in
          a manner contrary to this Agreement and/or the Authorized Reseller's
          agreement with DISTRIBUTOR if DISTRIBUTOR does not take action to stop
          such unauthorized use, where it is legally permitted to do so by
          Applicable Laws, within thirty (30) days from receipt of a request
          from smart gmbh demanding discontinuation; or

     (c)  if any situation happens that entitles smart gmbh to terminate the
          Distributor Agreement; or

     (d)  if smart gmbh is prohibited by a court of a competent jurisdiction to
          use the smart Marks in the Contract Territory.

7.2  DISTRIBUTOR'S right to use the smart Marks shall automatically terminate
     upon the expiration or termination of the Distributor Agreement. In
     particular, DISTRIBUTOR'S right to use the word Mark "smart" as an integral
     part of its company name or domain name shall automatically terminate upon
     termination of the Distributor Agreement. Notwithstanding, in case the
     Contract Goods are, upon termination of the Distributor Agreement, not
     resold to smart gmbh, but remain With DISTRIBUTOR according to Article 14.4
     (viii) and 14.4 (iv) of the Distributor Agreement, DISTRIBUTOR may have a
     limited right to use the smart Marks within a period not exceeding twelve
     (12) months and only in the context of the Contract Products.

8.   OBLIGATIONS UPON TERMINATION

8.1  Subject to the Distributor Agreement in the event of permission of
     DISTRIBUTOR'S right to use the smart Marks for any reason, DISTRIBUTOR
     shall cease to utilize the smart Marks for any purpose at any time after
     such termination and shall remove or have removed the smart Marks
     immediately from wherever they have been affixed by or on behalf of
     DISTRIBUTOR.

8.2  DISTRIBUTOR shall ensure that its Authorized Resellers and agents also
     adhere to the provisions of Clause 8.1 above.

                                                                   Page 69 of 86

<PAGE>

                                    ANNEX 8

                            ALLOCATIONS OF FUNCTIONS

Draft Version, final version to be mutually agreed upon and added to the
Agreement by December 31, 2006

ALLOCATION OF WHOLESALE FUNCTIONS

*

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                              Pps 70 to 84 of 86

<PAGE>

                                     ANNEX 9

                              TREAD Act Information

*

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 85 of 86

<PAGE>

                                    ANNEX 10

                  Field Actions, Service Campaigns and Recalls

*

*    Confidential portions omitted and filed separately with the Securities and
     Exchange Commission pursuant to an application for confidential treatment
     pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
     amended.

                                                                   Page 86 of 86

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