Document:

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                                                                  EXHIBIT 10.2.1

                                {Infiniti Logo]

                               Automobile Dealer
                               Sales and Service
                                   Agreement
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{INFINITI LOGO]                                                         INFINITI
                                              DEALER SALES AND SERVICE AGREEMENT

    THIS AGREEMENT is entered into effective the day last set forth below by and
between the INFINITI DIVISION of NISSAN NORTH AMERICA, INC., a California
corporation, hereinafter called Seller, and the natural person or entity
identified as "Dealer" in the Final Article of this Agreement.

INTRODUCTION

    The purpose of this Agreement is to establish Dealer as an authorized dealer
of Infiniti Products and to provide for the sale and servicing of Infiniti
Products in a manner that will best serve owners, potential owners and
purchasers of Infiniti Products as well as the interests of Seller, Dealer and
other Authorized Infiniti Dealers. This Agreement sets forth: the rights which
Dealer will enjoy as an Authorized Infiniti Dealer; the responsibilities which
Dealer assumes in consideration of its receipt of these rights; and the
respective conditions, rights and obligations of Seller and Dealer that apply to
Seller's grant to Dealer of such rights and Dealer's assumption of such
responsibilities.

    This is a personal services Agreement. In entering into this Agreement and
appointing Dealer as provided below, Seller is relying upon the personal
qualifications, expertise, reputation, integrity, experience, ability and
representations of the individual(s) named herein as Principal Owner(s) and
Executive Manager.

    Infiniti Products are intended for discriminate owners with the expectation
that such owners will be loyal and proud, but also demanding toward Seller and
Dealer with respect to Infiniti Products and the manner in which they are sold
and serviced. Owners, potential owners and purchasers of Infiniti Products are
expected to want, and are entitled to do business with, dealers who enjoy the
highest reputation in their communities and have well located, attractive and
efficient places of business, courteous personnel and outstanding service and
parts facilities. Infiniti Products must be sold by enthusiastic dealers who are
not interested in short term results only but are willing to look toward long
term goals and who are devoted to creating and maintaining a positive total
ownership experience for owners of Infiniti Products. Seller's standard of
excellence for Infiniti Products must be matched by the dealers who sell them to
the public and who service them during their operative lives.

    Achievement of the purposes of this Agreement is premised upon mutual
understanding and cooperation between Seller and Dealer. Dealer has entered into
this Agreement in reliance upon Seller's integrity and expressed intention to
deal fairly with Dealer and the consuming public. Seller has entered into this
Agreement in reliance upon Dealer's integrity and ability and expressed
intention to deal fairly with the consuming public and Seller.

    It is the responsibility of Seller to market Infiniti Products throughout
the Territory. It is the responsibility of Dealer to actively promote the retail
sale of Infiniti Products and to provide courteous and efficient service of
Infiniti Products. The success of both Seller and Dealer will depend on how well
they each fulfill their respective responsibilities under this Agreement. It is
recognized that: Seller will endeavor to provide motor vehicles of excellent
quality and workmanship and to establish a network of Authorized Infiniti
Dealers that can provide an outstanding sales and service effort at the retail
level; and Dealer will endeavor to fulfill its responsibilities through
aggressive, sound, ethical selling practices and through conscientious regard
for customer service in all aspects of its Infiniti Dealership Operations.

    Seller and Dealer shall refrain from engaging in conduct or activities which
might be detrimental to or reflect adversely upon the reputation of Seller,
Dealer or Infiniti Products and shall engage in no discourteous, deceptive,
misleading or unethical practices or activities.

    For consistency and clarity, terms which are used frequently in this
Agreement have been defined in Section 1 of the Standard Provisions. All terms
used herein which are defined in the Standard Provisions shall have the meaning
stated in said Standard Provisions. These definitions should be read carefully
for a proper understanding of the provisions in which they appear.

To achieve the purposes referred to above, Seller and Dealer agree as follows:

ARTICLE FIRST: Appointment of Dealer

    Subject to the conditions and provisions of this Agreement, Seller:

    (a) appoints Dealer as an Authorized Infiniti Dealer and grants Deafer the
non-exclusive right to buy from Seller those Infiniti Products specified in
Dealer's current Product Addendum hereto, for resale, rental or lease at or from
the Dealership Locations established and described in accordance with Section 2
of the Standard Provisions; and

    (b) grants Dealer a non-exclusive right, subject to and in accordance with
Section 5.L of the Standard Provisions, to identify itself as an Authorized
Infiniti Dealer, to display the Infiniti Marks in the conduct of its Dealership
Operations and to use the Infiniti Marks in the advertising, promotion and sale
of Infiniti Products in the manner provided in this Agreement.

ARTICLE SECOND: Assumption of Responsibilities by Dealer

    Dealer hereby accepts from Seller its appointment as an Authorized Infiniti
Dealer and, in consideration of its appointment and subject to the other
conditions and provisions of this Agreement, hereby assumes the responsibility
for:

    (a) establishing and maintaining at the Dealership Location the Dealership
Facilities in accordance with Section 2 of the Standard Provisions;

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    (b) actively and effectively promoting the sale at retail (and, if Dealer
elects, the leasing and rental) of Infiniti Vehicles within Dealer's Primary
Market Area in accordance with Section 3 of the Standard Provisions;

    (c) servicing Infiniti Vehicles and for selling and servicing Genuine Parts
and Accessories in accordance with Section 4 of the Standard Provisions;

    (d) building and maintaining consumer confidence in Dealer and in Infiniti
Products in accordance with Sections 3, 4, and 5 of the Standard Provisions; and

    (e) performance of the additional responsibilities set forth in this
Agreement, including those specified in Section 5 of the Standard Provisions.

ARTICLE THIRD: Ownership

    (a) OWNERS. This Agreement has been entered into by Seller in reliance upon,
and in consideration of, the personal qualifications, expertise, reputation,
integrity, experience, ability and representations with respect thereto of the
Principal Owner(s) named in the Final Article of this Agreement and in reliance
upon Dealer's representations concerning the ownership of Dealer as follows:

       (i) Dealer represents and agrees that the person(s) named as Principal
       Owner(s) in the Final Article of this Agreement, and only those
       person(s), shall be the Principal Owner(s) of Dealer.

       (ii) Dealer represents and agrees that the person(s) named as Other
       Owner(s) in the Final Article of this Agreement, and only those
       person(s), shall be the Other Owner(s) of Dealer.

    (b) HOLDING COMPANY. Seller requires that a natural person be named as the
Principal Owner(s) of Dealer because Seller relies on the personal
qualifications, expertise, reputation, integrity, experience, ability and
representations of such individuals. If one or more of the Principal Owners of
Dealer is a corporation, partnership or other entity and not a natural person
(hereinafter called "Holding Company"), Dealer and Seller agree that the natural
persons listed in the Holding Company Addendum of this Agreement as owners of
the Holding Company shall be deemed to be the Principal Owner(s) and/or Other
Owner(s) of Dealer, as the case may be, and that the terms and conditions of
this Agreement, including without limitation the provisions of this Article
Third and Sections 11, 13 and 14 of the Standard Provisions, shall apply to the
owner(s) of the Holding Company as well as to Dealer. Dealer represents to
Seller and agrees that the Holding Company is owned as indicated in the Holding
Company Addendum to this Agreement.

    (c) CHANGES IN OWNERSHIP. In view of the fact that this is a personal
services Agreement and in view of its objectives and purposes, this Agreement
and the rights and privileges conferred on Dealer hereunder are not assignable,
transferable or salable by Dealer, and no property right or interest is or shall
be deemed to be sold, conveyed or transferred to Dealer under this Agreement.
Dealer agrees that any change in the ownership of Dealer specified herein
requires the prior written consent of Seller, excepting only changes in the
record or beneficial ownership interests of Other Owners not effecting a change
in majority control or interest. Dealer shall give Seller prior notice of any
proposed change in said ownership requiring the consent of Seller and immediate
notice of the death or incapacity of any Principal Owner. No such change, and no
assignment of this Agreement or of any right or interest herein, shall be
effective against Seller unless and until embodied in an appropriate amendment
to or assignment of this Agreement, as the case may be, duly executed and
delivered by Seller and by Dealer. Seller shall not, however, unreasonably
withhold its consent to any such change. Seller shall have no obligation to
transact business with any person who is not named either as a Principal Owner
or Executive Manager of Dealer hereunder or otherwise to give effect to any
proposed sale or transfer of the ownership or management of Dealer prior to
having concluded the evaluation of such a proposal as provided in Section 14 of
the Standard Provisions.

ARTICLE FOURTH: Management

    (a) EXECUTIVE MANAGER. Seller and Dealer agree that the retention by Dealer
of qualified management is of critical importance to the successful operation of
Dealer and to the achievement of the purposes and objectives of this Agreement.
This Agreement has been entered into by Seller in reliance upon, and in
consideration of, the personal qualifications, expertise, reputation, integrity,
experience, ability and representations with respect thereto of the person named
as Executive Manager in the Final Article of this Agreement and on Dealer's
representation to Seller and agreement that the person identified as Executive
Manager shall be Dealer's executive manager, shall have full managerial
authority for the Dealership Operations, and shall continually provide his or
her personal services in operating the dealership and will be physically present
at the Dealership Facilities on a full-time basis.

    (b) CHANGES IN MANAGEMENT. In view of the fact that this is a personal
services Agreement and in view of its objectives and purposes, Dealer agrees
that any change in the Executive Manager from that specified in the Final
Article of this Agreement requires the prior written consent of Seller. Dealer
shall give Seller prior notice of any proposed change in Executive Manager and
immediate notice of the death or incapacity of any Executive Manager. No change
in Executive Manager shall be effective unless and until embodied in an
appropriate amendment to this Agreement duly executed and delivered by Seller
and by Dealer. Subject to the foregoing, Dealer shall make its own, independent
decisions concerning the hiring and firing of its employees, including, without
limitation, its Executive Manager.

    To enable Seller to evaluate and respond to Dealer concerning any proposed
change in Executive Manager, Dealer agrees to provide, in the form requested by
Seller and in a timely manner, all applications and information customarily
requested by Seller to evaluate the proposed change. While Seller shall not
unreasonably withhold its consent to any such change, it is agreed that any
successor Executive Manager must possess personal qualifications, expertise,
reputation, integrity, experience and ability which are, in the opinion of
Seller, satisfactory. Seller will determine whether, in its opinion, the
proposed change is likely to result in a successful dealership operation with
capable management that will satisfactorily perform Dealer's obligations

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under this Agreement. Seller shall have no obligation to transact business with
any person who is not named as an Executive Manager of Dealer hereunder prior to
having concluded its evaluation of such person.

    (c) EVALUATION OF MANAGEMENT. Dealer and Seller understand and acknowledge
that the personal qualifications, expertise, reputation, integrity, experience
and ability of the Executive Manager and his or her ability to effectively
manage Dealer's day-to-day Dealership Operations is critical to the success of
Dealer in performing its obligations under this Agreement. Seller may from time
to time develop standards and/or procedures for evaluating the performance of
the Executive Manager and of Dealer's personnel generally. Seller may, from time
to time, evaluate the performance of the Executive Manager and will advise
Dealer and the Executive Manager of the results of such evaluations and the way
in which any deficiencies affect Dealer's performance of its obligations under
this Agreement.

ARTICLE FIFTH: Additional Provisions

    The additional provisions set forth in the attached "Infiniti Dealer Sales
and Service Agreement Standard Provisions," bearing form number IA-4S- D-7/89,
are hereby incorporated in and made a part of this Agreement. The Notice of
Primary Market Area, Dealership Facilities Addendum, Product Addendum, Dealer
Operating Requirements Addendum, Dealership Identification Addendum, Holding
Company Addendum, if applicable, and all Guides and Standards referred to in
this Agreement (including references contained in the Standard Provisions
referred to above) are hereby incorporated in and made a part of this Agreement.
Dealer further agrees to be bound by and comply with: the Warranty Manual;
Seller's Manuals or Instructions heretofore or hereafter issued by Seller to
Dealer; any amendment, revision or supplement to any of the foregoing; and any
other manuals heretofore or hereafter issued by Seller to Dealer.

ARTICLE SIXTH: Termination of Prior Agreements

    This Agreement cancels, supersedes and annuls all prior contracts,
agreements and understandings except as stated herein, all negotiations,
representations and understandings being merged herein. No waiver, modification
or change of any of the terms of this Agreement or change or erasure of any
printed part of this Agreement or addition to it (except filling of blank spaces
and lines) will be valid or binding on Seller unless approved in writing by the
President or an authorized Vice-President of Seller.

ARTICLE SEVENTH: Term

    This Agreement shall have a term commencing on the effective date hereof and
continuing until terminated by either party in accordance with Section 11 of the
Standard Provisions.

ARTICLE EIGHTH: License of Dealer

    If Dealer is required to secure or maintain a license for the conduct of its
business as contemplated by this Agreement in any state or jurisdiction where
any of its Dealership Operations are to be conducted or any of its Dealership
Facilities are located, this Agreement shall not be valid until and unless
Dealer shall have furnished Seller with written notice specifying the date and
number, if any, of such license or licenses issued to Dealer, Dealer shall
notify Seller immediately in writing if Dealer shall fail to secure or maintain
any and all such licenses or renewal thereof or, if such license or licenses are
suspended or revoked, specifying the effective date of any such suspension or
revocation.

ARTICLE NINTH: Execution of Agreement

    This Agreement, and any Addendum or amendment or notice with respect
thereto, shall be valid and binding on Seller only when it bears the signature
of either the President or an authorized Vice-President of Seller and, when such
signature is a facsimile, the manual countersignature of an authorized employee
of Seller at the Director level and a duplicate original thereof is delivered
personally or by mail to the Dealership Location. This Agreement shall bind
Dealer only when it is signed by: a duly authorized officer or executive of
Dealer if a corporation; one of the general partners of Dealer if a partnership;
or Dealer if an individual.

ARTICLE TENTH: Special Conditions

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<S>    <C>                                                <C>                                                         <C>

FINAL ARTICLE

Dealer is ________________________________________________________________________________________________________________, a (an)
(Select One)   [ ] individual   [ ] partnership    [ ] corporation   [ ] limited liability company,
incorporated or formed under the laws of the State of ___________________________________________________________________________
doing business as _______________________________________________________________________________________________________________
("Dealer"). Dealer is located in _________________________________________________, ___________________________________________.

The Principal Owned(s) of Dealer are as follows:

                                                                                                                       PERCENTAGE
NAME                                                      RESIDENCE                                                    INTEREST
______________________________________________________    _________________________________________________________    __________

The Other Owner(s) of Dealer are as follows:

                                                                                                                       PERCENTAGE
NAME                                                      RESIDENCE                                                    INTEREST
______________________________________________________    _________________________________________________________    __________

The Executive Manager of Dealer is as follows:

                                                                                                                       PERCENTAGE
NAME                                                      RESIDENCE                                                    INTEREST
______________________________________________________    _________________________________________________________    __________

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement in triplicate effective as of the ____ day of ___________,
______ at Carson, California.
(YEAR)

DEALER:                                                                    SELLER:
                                                                           INFINITI DIVISION
                                                                           NISSAN NORTH AMERICA, INC.

______________________________________________________________    By ____________________________________________________________
                           Name                                                               Signature

By ___________________________________________________________    _______________________________________________________________
                          Signature                                                       Type Name & Title

______________________________________________________________    By ____________________________________________________________
                         Type Name & Title                                                    Signature

                                                                  _______________________________________________________________
                                                                                           Type Name & Title

</TABLE>

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                                [INFINITI LOGO]

                                                                        INFINITI
                                                                    DEALER SALES
                                                                             AND
                                                               SERVICE AGREEMENT

                                                             STANDARD PROVISIONS

INFINITI DIVISION
NISSAN MOTOR CORPORATION IN U.S.A.
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TABLE OF CONTENTS
                                                                           Page

 1. DEFINITIONS ..........................................................    1

 2. DEALERSHIP LOCATION AND DEALERSHIP FACILITIES ........................    2
    A. Location and Facilities............................................    2
    B. Dealership Facilities Addendum ....................................    2
    C. Changes and Additions .............................................    2
    D. Development of Market Studies .....................................    2
    E. Evaluation of Dealership Facilities and Location ..................    2

 3. VEHICLE SALES RESPONSIBILITIES OF DEALER .............................    2
    A. General Sales Obligations of Dealer................................    2
    B. Sales of Infiniti Vehicles.........................................    3
    C. Metropolitan Markets ..............................................    3
    D. Additional Factors for Consideration ..............................    3
    E. Used Motor Vehicle Sales ..........................................    3
    F. Evaluation of Dealer's Sales Performance ..........................    3

 4. RESPONSIBILITIES OF DEALER WITH RESPECT TO SERVICE AND PARTS..........    3
    A. General Service Obligations of Dealer .............................    3
    B. Specific Service Obligations of Dealer.............................    4
    C. Service Operations of Dealer ......................................    5
    D. Parts Operations of Dealer ........................................    5
    E. Evaluation of Dealer's Service and Parts Performance ..............    5

 5. OTHER SELLER AND DEALER RESPONSIBILITIES .............................    6
    A. Assistance Provided by Seller .....................................    6
    B. Advertising and Promotion .........................................    6
    C. Customer Satisfaction and Required Disclosures ....................    6
    D. Dealer Personnel ..................................................    6
    E. Signs .............................................................    7
    F. Hours of Operations ...............................................    7
    G. Capital and Financing .............................................    7
    H. Dealer Systems ....................................................    7
    1. Records and Reports ...............................................    7
    J. Right of Inspection ...............................................    8
    K. Confidentiality ...................................................    8
    L. Use of Infiniti Marks .............................................    8

 6. PURCHASE AND DELIVERY ................................................    8
    A. Dealer Purchases ..................................................    8
    B. Delays in Delivery ................................................    9
    C. Shipment of Infiniti Products .....................................    9
    D. Passage of Title ..................................................    9
    E. Security Interest .................................................    9
    F. Charges For Storage and Diversions ................................   10
    G. Changes in Infiniti Products ......................................   10

 7. PRICING ..............................................................   10
    A. Infiniti Vehicles..................................................   10
    B. Genuine Parts and Accessories .....................................   10
    C. Other Products and Services .......................................   10

 8. PAYMENT ..............................................................   10
    A. Payment for Vehicles ..............................................   10
    B. Payment for Parts and Accessories .................................   10
    C. Accounts Payable ..................................................   11
    D. Collection of Taxes by Dealer .....................................   11

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                                                   TABLE OF CONTENTS (CONTINUED)
                                                                            Page

 9. WARRANTIES ...........................................................   11

10. INDEMNIFICATION ......................................................   11
    A. Indemnification of Dealer .........................................   11
    B. Indemnification of Seller .........................................   12
    C. Conditions and Exceptions to Indemnification ......................   12

11. TERMINATION ..........................................................   13
    A. Termination Due to Certain Acts or Events .........................   13
    B. Termination By Seller for Non-Performance by Dealer ...............   14
    C. Termination Because of Death or Physical or Mental Incapacity of
       Principal Owner ...................................................   14
    D. Termination for Failure of Seller or Dealer to be Licensed ........   14
    E. Termination by Dealer .............................................   14
    F. Termination by Seller Because of a Change of Seller's Method of
       Distribution or Decision by Seller to Cease Distribution of
       Infiniti Vehicles .................................................   14
    G. Termination Upon Entering Into a New or Amended Sales and Service
       Agreement or Addenda ..............................................   15

12. RIGHTS AND LIABILITIES UPON TERMINATION ..............................   15
    A. Termination Procedures ............................................   15
    B. Repurchases by Seller Upon Termination ............................   15
    C. Dealer's Responsibilities with Respect to Repurchase ..............   16
    D. Title to Repurchased Property .....................................   16
    E. Payment ...........................................................   16
    F. Cancellation of Deliveries ........................................   16

13. ESTABLISHMENT OF SUCCESSOR DEALER ....................................   16
    A. Because of Death of Principal Owner ...............................   16
    B. Consideration of Successor Addendum ...............................   17
    C. Termination of Successor Addendum .................................   17
    D. Evaluation of Successor Dealership ................................   17
    E. Termination of Market Representation ..............................   17
    F. Termination of Offer ..............................................   17

14. SALE OF ASSETS OR OWNERSHIP INTERESTS IN DEALER ......................   17
    A. Sale or Transfer ..................................................   17
    B. Seller's Evaluation ...............................................   17
    C. Effect of Termination .............................................   18
    D. Seller's Rights of First Refusal or Option to Purchase ............   18

15. GENERAL ..............................................................   19
    A. Notices ...........................................................   19
    B. No Implied Waivers ................................................   19
    C. No Agency .........................................................   19
    D. Limitations of Seller's Liability .................................   19
    E. Entire Agreement ..................................................   19
    F. California Law ....................................................   19
    G. Changes Required by Law ...........................................   19
    H. Severability ......................................................   19
    I. Assignment ........................................................   19
    J. No Franchise Fee ..................................................   19
    K. Captions ..........................................................   19
    L. Benefit ...........................................................   19
    M. Notice of Failure to Act in "Good Faith" ..........................   20

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[INFINITI LOGO]                                                         INFINITI
                                              DEALER SALES AND SERVICE AGREEMENT

     The following Standard Provisions have by reference been incorporated in
and made a part of the Infiniti Dealer Sales and Service Agreement which they
accompany and which has been executed on behalf of Seller and Dealer.

     SECTION 1. DEFINITIONS

     Seller and Dealer agree that the following terms, as used in this
Agreement, shall be defined exclusively as set forth below.

     A. "AUTHORIZED INFINITI DEALER(S)" shall mean dealers located in the
Territory that are authorized by Seller to conduct Dealership Operations in
connection with the sale of Infiniti Products, pursuant to a duly executed
Infiniti Dealer Sales and Service Agreement.

     B. "INFINITI VEHICLE(S)" shall mean the new passenger vehicles specified in
the current Product Addendum.

     C. "GENUINE PARTS AND ACCESSORIES" shall mean such parts, accessories and
other products for Infiniti Vehicles as are from time to time offered for sale
by Seller to Authorized Infiniti Dealers for resale under this Agreement.

     D. "INFINITI PRODUCT(S)" shall mean Infiniti Vehicles, Genuine Parts and
Accessories, and such other products sold by Seller to Dealer and designated by
Seller as an Infiniti Product.

     E. "COMPETITIVE VEHICLES" shall mean those new vehicles which are
considered by Seller to be directly competitive with respective Infiniti
Vehicles. Seller shall advise Dealer in writing of the lines and models of
vehicles which comprise Competitive Vehicles hereunder from time to time.

     F. "INDUSTRY VEHICLES" shall mean all new vehicles of all manufacturers
which are sold and distributed within the United States, to the extent data
relating to registration thereof are reasonably available.

     G. "DEALERSHIP LOCATION" shall mean the place or places of business of
Dealer established and described in accordance with Section 2 of this Agreement.

     H. "DEALERSHIP FACILITIES" shall mean the land areas at the Dealership
Location and the buildings and improvements erected thereon provided by Dealer
in accordance with Section 2 of this Agreement.

     I. "DEALERSHIP FACILITIES ADDENDUM" shall mean the addendum executed by
Seller and Dealer pursuant to Section 2 of this Agreement.

     J. "DEALERSHIP OPERATIONS" shall mean all dealer functions contemplated by
this Agreement including, without limitation, sale and servicing of Infiniti
Products, use and display of Infiniti Marks and Infiniti Products, rental and
leasing of Infiniti Vehicles, sale of used vehicles, body shop work, financing
or insurance services and any other activities undertaken by Dealer in
connection with Infiniti Products whether conducted directly or indirectly by
Dealer.

     K. "PRIMARY MARKET AREA" shall mean the geographic area which is designated
from time to time as the area of Dealer's sales and service responsibility for
Infiniti Products in a Notice of Primary Market Area issued by Seller to Dealer.
Seller reserves the right, in its reasonable discretion, to issue new,
superseding "Notices of Primary Market Area" to Dealer from time to time. Such
geographic area may at any time be applicable to Dealer and to other Authorized
Infiniti Dealers.

     L. "PRINCIPAL OWNER(S)" shall mean the person(s) named as Principal
Owner(s) in the Final Article of this Agreement upon whose personal
qualifications, expertise, reputation, integrity, experience, ability and
representations concerning the management and operation of Dealer, Seller has
relied in entering into this Agreement.

     M. "OTHER OWNER(S)" shall mean the person(s) named as Other Owner(s) in the
Final Article of this Agreement who will not be involved in the operation or
management of Dealer.

     N. "EXECUTIVE MANAGER" shall mean the person named as Executive Manager in
the Final Article of this Agreement upon whose personal qualifications,
expertise, reputation, integrity, experience, ability and representations that
he or she shall devote his or her full-time efforts to and have full managerial
authority and responsibility for the day-to-day management and performance of
Dealer, Seller has relied in entering into this Agreement.

     O. "SUCCESSOR ADDENDUM" shall mean the Successor Addendum, if any, executed
by Seller and Dealer pursuant to Section 13 of this Agreement.

     P. "GUIDES" OR "STANDARDS" shall mean such reasonable criteria as may be
established by Seller for Authorized Infiniti Dealers from time to time under
its standard procedures with respect to Dealership Operations including, without
limitation, such matters as dealership facilities, tools, equipment, financing,
capitalization, inventories, systems operations and personnel. The execution of
this Agreement or of any addenda hereto (including without limitation any
Dealership Facilities Addendum) shall not, however, be construed as evidence of
Dealer's fulfillment of or compliance with said Guides or Standards or of
Dealer's fulfillment of its responsibilities under this Agreement.

     Q. "WARRANTY MANUAL" shall mean the publication or publications of Seller,
as the same may from time to time be amended, revised or supplemented, which set
forth Seller's policies and procedures concerning the administration of Seller's
warranties and related matters.

     R. "INFINITI MARK(S)" shall mean those trademarks, service marks, names,
logos and designs that Seller may, from time to time, use or authorize for use
by Dealer in connection with Infiniti Products or Dealership Operations
including, without limitation, the name "Infiniti".

     S. "SELLER'S MANUALS OR INSTRUCTIONS" shall mean those bulletins, manuals,
programs or instructions issued by Seller to all Authorized

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Infiniti Dealers advising them of Seller's policies or procedures under this
Agreement including, without limitation, the Parts and Accessories Policy and
Procedure Manual, the Infiniti Dealer Accounting System Manual, the Facilities
Standards Manual, the Identity Standards Manual, the Human Asset Management
Manual, and the Environmental Properties Manual.

     T. "TERRITORY" shall mean the geographic area in which Seller has been
authorized to distribute Infiniti Products.

     U. "PRODUCT ADDENDUM" shall mean the Product Addendum issued by Seller to
Dealer which specifies those Infiniti Vehicles which shall be offered for sale
by Seller to Dealer for resale. Seller reserves the right, in its sole
discretion, to issue new, superseding Product Addenda to Dealer from time to
time.

     V. "DEALERSHIP IDENTIFICATION ADDENDUM" shall mean the Dealership
Identification Addendum executed by Seller and Dealer pursuant to Section 5.E of
this Agreement.

     W. "DEALER OPERATING REQUIREMENTS ADDENDUM" shall mean the Dealer Operating
Requirements Addendum executed by Seller and Dealer pursuant to Sections 5.C,
5.D and 5.1 of this Agreement.

     SECTION 2. DEALERSHIP LOCATION AND DEALERSHIP FACILITIES

     A.  LOCATION AND FACILITIES.

         Dealer shall provide, at the Dealership Location approved by Seller in
accordance with Section 2.B hereof, Dealership Facilities that (i) will enable
Dealer to effectively perform its responsibilities under this Agreement; (ii)
are satisfactory in space, appearance, layout, equipment, signage; and (iii) are
otherwise substantially in accordance with the Guides and Standards therefor
established by Seller and the Facilities Standards Manual, as the same may be
issued to Dealer from time to time. Dealer shall conduct its Dealership
Operations only from the Dealership Location specified in the Dealership
Facilities Addendum. If the Dealership Location is comprised of more than one
place of business, Dealer shall use each such place of business only for the
purposes specified therefor in the current Dealership Facilities Addendum.

     B.  DEALERSHIP FACILITIES ADDENDUM.

         Dealer and Seller will execute a Dealership Facilities Addendum which
will include a description of the Dealership Location and the Dealership
Facilities, the approved use for each such place of business and facility, and
the current Guides therefor.

     C.  CHANGES AND ADDITIONS.

         Dealer shall not move, relocate, or change the usage of the Dealership
Location or any of the Dealership Facilities, or substantially modify any of the
Dealership Facilities, nor shall Dealer or any person named in the Final Article
of this Agreement directly or indirectly establish or operate any other
locations or facilities for the sale or servicing of Infiniti Products or for
the conduct of any other of the Dealership Operations contemplated by this
Agreement, without the prior written consent of Seller. Any changes in the
Dealership Location or the Dealership Facilities that may be agreed to by Seller
and Dealer shall be reflected in a new, superseding Dealership Facilities
Addendum executed by Seller and Dealer.

         Dealer acknowledges that the addition and maintenance of another line
of vehicles or another automobile dealership operating simultaneously with its
Infiniti Dealership Operations at the Dealership Location could adversely affect
Dealer's sales and service performance with respect to Infiniti Products.
Accordingly, Dealer agrees to notify Seller in writing at least sixty (60) days
before Dealer enters into any agreement or letter of intent with respect to the
addition of a new line or lines of vehicles to operate from the Dealership
Facilities.

     D.  DEVELOPMENT OF MARKET STUDIES.

         Seller may, from time to time and in its sole discretion, conduct
studies of various geographic areas to evaluate market conditions. Such market
studies shall, where appropriate, take into account such factors as geographical
characteristics, consumer shopping patterns, existence of other automobile
retail outlets, sales opportunities and service requirements of the geographic
area in which Dealer's Primary Market Area is located, trends in marketing
conditions, current and prospective trends in population, income, occupation,
and such other demographic characteristics as may be determined by Seller to be
relevant to its study. Such studies will make recommendations concerning the
market, the Dealership Facilities, and the Dealership Location. Prior to
conducting a study which includes the geographic area in which Dealer's Primary
Market Area is located, Seller will notify Dealer of its intention to conduct
such a study. Dealer will be given the opportunity to present to Seller such
information pertaining to such study as Dealer believes may be relevant. Seller
will consider all relevant information timely provided by Dealer before
concluding its study.

     E.  EVALUATION OF DEALERSHIP FACILITIES AND LOCATION.

         Seller will periodically evaluate Dealer's performance of its
responsibilities under this Section 2. In making such evaluations, Seller will
give consideration to: the actual land and building space provided by Dealer for
the performance of its responsibilities under this Agreement; the current Guides
and Standards established by Seller for the Dealership Facilities; the
appearance, condition and layout of the Dealership Facilities; the location of
the Dealership Facilities relative to the sales opportunities and service
requirements of the Primary Market Area; and such other factors, if any, as may
directly relate to Dealer's performance of its responsibilities under this
Section 2. Evaluations prepared pursuant to this Section 2.E will be discussed
with and provided to Dealer, and Dealer shall have an opportunity to comment, in
writing, on such evaluations, and Seller will consider Dealer's comments. Dealer
shall promptly take such action as may be required to correct any deficiencies
in Dealer's performance of its responsibilities under this Section 2.

     SECTION 3. VEHICLE SALES RESPONSIBILITIES OF DEALER

     A.  GENERAL SALES OBLIGATIONS OF DEALER.

         Dealer shall actively and effectively promote through its own
advertising and sales promotion activities the sale at retail (and if Dealer
elects, the leasing and rental) of Infiniti Vehicles to customers located

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                          Infiniti Standard Provisions

within Dealer's Primary Market Area. Dealer's Primary Market Area is a
geographic area which Seller uses as a tool to evaluate Dealer's performance of
its sales obligations hereunder. Dealer agrees: that it has no exclusive right
or interest in and such geographic area which Seller may designate; that Seller
may add, relocate or replace dealers in Dealer's Primary Market Area; and that
Seller may, in its reasonable discretion, change Dealer's Primary Market Area
from time to time.

     B.  SALES OF INFINITI VEHICLES.

         Dealer's performance of its sales responsibility for Infiniti Vehicles
will be evaluated by Seller on the basis of such reasonable criteria as Seller
may develop from time to time, including for example:

         (1) Achievement of reasonable sales objectives which may be established
from time to time by Seller for Dealer as standards for performance;

         (2) Dealer's sales of Infiniti Vehicles in Dealer's Primary Market Area
and/or the metropolitan area in which Dealer is located, as applicable, or
Dealer's sales as a percentage of:

             (i)     registrations of Infiniti Vehicles;

             (ii)    registrations of Competitive Vehicles;

             (iii)   registrations of Industry Vehicles;

         (3) A comparison of Dealer's sales and/or registrations to sales and/or
registrations of all other Authorized Infiniti Dealers combined in Seller's
Sales Region and District in which Dealer is located; and, where Section 3.C
applies, for all other Authorized Infiniti Dealers combined in the metropolitan
area in which Dealer is located, and

         (4) A comparison of sales and/or registrations achieved by Dealer to
the sales or registrations of Dealer's competitors.

         (5) Dealer's performance in building and maintaining consumer
confidence in Dealer and in Infiniti Products as compared with performance
levels achieved by other Authorized Infiniti Dealers in Seller's Region or
District in which Dealer is located as measured by surveys or indices of
consumer satisfaction or such other means as may be deemed appropriate by
Seller.

         Seller shall advise Dealer in writing of the criteria used by Seller to
evaluate Dealers' sales performance hereunder from time to time. The sales and
registration data referred to in this Section 3 shall be those utilized in
Seller's records or in reports furnished to Seller by independent sources
selected by it and generally available for such purpose in the automotive
industry. If such reports of registration and/or sales are not generally
available, Seller may rely on such other registration and/or sales data as can
be reasonably obtained by Seller.

     C.  METROPOLITAN MARKETS.

         If Dealer is located in a metropolitan or other marketing area where
there are located one or more Authorized Infiniti Dealers other than Dealer, the
combined sales performance of all Infiniti Dealers in such metropolitan or other
marketing area may be evaluated as indicated in Sections 3.B.2 and 3.B.3 above,
and Dealer's sales performance may also be evaluated on the basis of the
proportion of sales and potential sales of Infiniti Vehicles in the metropolitan
or other marketing area in which Dealer is located for which Dealer fairly may
be held responsible.

     D.  ADDITIONAL FACTORS FOR CONSIDERATION.

         In evaluating Dealer's sales performance, Seller will take into account
such reasonable criteria as Seller may determine from time to time, including,
for example, the following: the Dealership Location; the general shopping habits
of the public in such market area; the availability of Infiniti Vehicles to
Dealer and to other Authorized Infiniti Dealers; any special local marketing
conditions that would affect Dealer's sales performance differently from the
sales performance of other Authorized Infiniti Dealers; the recent and long term
trends in Dealer's sales performance; the manner in which Dealer has conducted
its sales operations (including advertising, sales promotion, and treatment of
customers); and the other factors, if any, directly affecting Dealer's sales
opportunities and performance.

     E.  USED MOTOR VEHICLE SALES.

         Dealer shall engage in used motor vehicle operations as and to the
extent reasonably required for Dealer to effectively perform its
responsibilities for the sale of Infiniti Vehicles. Subject to requirements and
guidelines established by Seller, Dealer shall be entitled to identify such used
motor vehicle operations as a part of its Dealership Operations and to apply the
Infiniti Marks relating to used motor vehicle operations.

     F.  EVALUATION OF DEALER'S SALES PERFORMANCE.

         Seller will periodically evaluate Dealer's performance of its
responsibilities under this Section 3. Evaluations prepared pursuant to this
Section 3.F will be discussed with and provided to Dealer. Dealer shall have an
opportunity to comment, in writing, on such evaluations and Seller will respond
in writing to such written comment received from Dealer. Dealer shall promptly
take such action as may be required to correct any deficiencies in Dealer's
performance of its responsibilities under this Section 3.

     SECTION 4. RESPONSIBILITIES OF DEALER WITH RESPECT TO SERVICE AND PARTS

     A.  GENERAL SERVICE OBLIGATIONS OF DEALER.

         Dealer understands and acknowledges that future sales of Infiniti
Products depend, in part, upon the satisfaction of Dealer's customers with its
servicing of such Products. Dealer further recognizes that Seller has entered
into this Agreement in reliance upon Dealer's representations concerning its
ability and commitment to fair dealing and professional servicing. Accordingly,
Dealer shall develop and maintain a quality service organization and shall
render at the Dealership Facilities prompt, efficient and courteous service to
owners and users of Infiniti Products, regardless of the origin of purchase
including, without limitation, the specific obligations described in Section
4.B. In this regard, Dealer shall take all reasonable steps to insure that: the
service needs of its customer's Infiniti Vehicles are accurately diagnosed;
Dealer's customers are advised of such needs and that each customer's consent is
obtained prior to initiation of any repairs; necessary repairs and maintenance
are professionally performed; and Dealer's customers are treated courteously and
fairly.

                                                                               3
<PAGE>
     B.  SPECIFIC SERVICE OBLIGATIONS OF DEALER.

         (1) Pre-Delivery Inspections and Service.

             Dealer shall perform pre-delivery inspections and service on each
Infiniti Vehicle prior to sale and delivery thereof by Dealer, in accordance
with the Standards and procedures relating thereto set forth in the applicable
pre-delivery inspection schedules furnished by Seller to Dealer from time to
time. The completion of such inspection and service shall be verified by Dealer
in a form or manner approved by Seller for this purpose. Dealer shall retain the
original or a legible copy of each such form in its records; transmit such data
to Seller as requested by Seller from time to time, and furnish a copy of such
form to the purchaser.

         (2) Warranty Repairs and Goodwill Adjustments.

             Dealer shall promptly, courteously and efficiently perform: (i)
warranty repairs on each Infiniti Product which qualifies for such repairs under
the provisions of any warranty furnished therewith by Seller or the manufacturer
of the Infiniti Product and (ii) such other inspections, repairs or corrections
on Infiniti Products as may be approved or authorized by Seller to be made at
Seller's expense (hereinafter referred to as "goodwill adjustments"). Dealer
shall perform such repairs and service on each such Infiniti Product as and when
required and requested by the owner or user (or in the case of goodwill
adjustments when requested by Seller), without regard to its origin of purchase
and in accordance with the provisions relating thereto set forth in the Warranty
Manual or in Seller's Manuals or Instructions issued to Dealer from time to
time. In performing such repairs and service on Infiniti Products for which
Seller has agreed to reimburse Dealer, Dealer shall use Genuine Parts and
Accessories unless Dealer receives prior authorization from Seller to use
non-genuine parts or accessories. Dealer will provide to each owner or user of
an Infiniti Product upon which any such repairs or service are performed a copy
of the repair order reflecting all services performed.

         (3) Campaign Inspections and Corrections.

             Dealer shall promptly, courteously and efficiently perform such
campaign inspections and/or corrections for owners and users of Infiniti
Products, regardless of their origin of purchase, as are: (i) described in owner
notifications and recall campaigns conducted by Seller in furtherance of any
federal or state law, regulation, rule or order; or (ii) requested by Seller on
Infiniti Products that qualify for such inspections and/or corrections. Once
Dealer has been notified that a recall or service campaign affects a particular
class or type of Infiniti Product, Dealer shall perform such campaign
inspections and/or corrections on all affected Infiniti Products then in or
which thereafter come into Dealer's inventory or which are delivered to Dealer
for repair or service. Dealer shall inquire, through the Infinitinet system or
otherwise, with respect to each such Infiniti Product to determine whether all
applicable campaign inspections and/or corrections have been performed on such
Infiniti Product and, if they have not been performed, Dealer shall perform
them.

             Dealer shall advise Seller as and when such campaign inspections
and/or corrections are performed, in accordance with Seller's Manuals or
Instructions relating thereto and in accordance with the provisions relating
thereto set forth in the Warranty Manual. To enable Dealer to perform required
corrections as promptly as practicable, parts and/or other materials required
for each such campaign may be shipped in quantity and billed to Dealer. Dealer
shall accept and retain such parts and/or other materials for use in such
campaign. Upon completion of the campaign program, Dealer shall have the right
to return excess parts shipped by Seller to Dealer for such campaign, but only
to the extent that Dealer has not ordered and received additional parts from
Seller. Such a return of parts shall be apart from any other parts return
policies or programs which may be instituted by Seller. In performing such
campaign corrections for which Seller has agreed to reimburse Dealer for parts
and materials used in making such corrections, Dealer shall use Genuine Parts
and Accessories unless Dealer receives prior authorization from Seller to use
non-genuine parts and accessories.

         (4) Maintenance and Repair Service.

             Dealer shall promptly, courteously and efficiently maintain and
repair Infiniti Products as and when required and requested by the owner or user
thereof, without regard to their origin of purchase. Dealer shall provide all
owners and users for whom Dealer provides maintenance and repair service
itemized invoices reflecting all the services performed. In connection with its
sale or offering for sale of any maintenance services recommended by Seller for
the maintenance of an Infiniti Product, Dealer shall advise each customer
requesting such recommended maintenance service of: (i) a description of the
items included in maintenance recommended by Seller and Dealer's retail price
therefor; and (ii) the price and description of such additional maintenance or
repair being sold or recommended by Dealer which are in addition to that
recommended by Seller in published owner's manuals.

         (5) Payments by Seller to Dealer.

             For pre-delivery inspections and service, warranty repairs,
goodwill adjustments, and campaign inspections and corrections performed by
Dealer in accordance with this Section 4.B, Seller shall fairly and adequately
reimburse Dealer for the parts and/or other materials (or shall provide Dealer
with the parts and/or other materials and the labor required and used in
connection therewith in accordance with the provisions relating thereto set
forth in the Warranty Manual. Dealer understands and acknowledges that such
repairs are provided for the benefit of owners and users of Infiniti Products,
and Dealer shall not impose any charge on such owners or users for parts,
materials, or labor for which Dealer has received or will receive compensation
from Seller hereunder.

             Dealer shall comply with the disposition instructions contained in
the Warranty Manual with respect to any Genuine Parts or Accessories acquired by
Dealer as a result of its performance of warranty repairs, goodwill adjustments
and campaign adjustments and/or corrections.

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<PAGE>
     C. SERVICE OPERATIONS OF DEALER.

        (1) Compliance with Laws.

         In performing the maintenance and service obligations specified in
Section 4.B, Dealer shall comply with all applicable provisions of federal,
state and local laws, ordinances, rules, regulations and orders affecting
Infiniti Products, including but not limited to laws relating to safety,
emissions control, noise control and customer service. Seller shall provide to
Dealer, and Dealer shall provide to Seller, such information and assistance as
may be reasonably requested by the other in connection with the performance of
obligations of the parties under such laws, ordinances, rules, regulations and
orders.

         If applicable law requires the installation or supply of equipment not
installed or supplied as standard equipment by Seller or the manufacturer of an
Infiniti Vehicle, Dealer shall, prior to its sale of the Infiniti Vehicles on or
for which such equipment is required, install or supply such equipment at its
own expense and in conformance with such Standards as may be adopted by Seller.
Dealer shall comply with all applicable laws pertaining to the installation or
supply of such equipment, including without limitation, the reporting thereof.

         (2) Tools and Equipment.

         Dealer shall provide for use in its service operations such service
equipment and special tools, comparable to the type and quality recommended by
Seller from time to time, as are necessary to meet Dealer's service
responsibilities hereunder and as are substantially in accordance with Seller's
Guides. In addition, Dealer shall obtain and maintain for use in its service
operations all tools which are essential to the proper service, repair and
maintenance of Infiniti Vehicles and are identified by Seller as essential
tools. Seller shall ship such essential tools to Dealer as required due to new
model and component introductions and Dealer shall pay Seller therefor as
invoiced. If Dealer is in possession of a tool equivalent to any essential tool
shipped by Seller, Dealer may so notify Seller and Seller will exempt Dealer
from purchasing such essential tool from Seller upon Seller's determination that
Dealer's tool will satisfy the need for the specific repair procedure or
procedures for which the essential tool is intended. Dealer shall maintain all
such equipment and tools in good repair and proper calibration so as to enable
Dealer to meet its service responsibilities under this Section 4.

         (3) Owner Relations.

         In providing service on Infiniti Products, Dealer shall make every
effort to build and maintain good relations between Dealer and owners and users
of Infiniti Products. Dealer shall promptly investigate and handle all matters
brought to its attention by Seller, owners or users of Infiniti Products, or any
public or private agency, relating to the sale or servicing of Infiniti
Products, so as to develop and maintain owner and user confidence in Dealer,
Seller and Infiniti Products.

         Dealer shall promptly report to Seller the details of each inquiry or
complaint received by Dealer relating to any Infiniti Product which Dealer
cannot handle promptly and satisfactorily. Dealer will take such other steps
with respect to such customer complaints as Seller may reasonably require.
Dealer will do nothing to affect adversely Seller's rights or obligations under
applicable laws, rules and/or regulations. Furthermore, Dealer shall participate
in and cooperate with such dispute resolution procedures as Seller may designate
from time to time and such other procedures as may be required by law.

         Seller will promptly investigate all matters brought to its attention
by Dealer, owners or users of Infiniti Products, or any public or private
agency, relating to the design, manufacture or sale by Seller of Infiniti
Products, and Seller will take such action as it may deem necessary or
appropriate so as to develop and maintain owner confidence in Seller, Dealer and
Infiniti Products.

     D.  PARTS OPERATIONS OF DEALER.

         (1) Parts Sales Responsibility of Dealer.

         Dealer shall actively and effectively promote through its own
advertising and sales promotion activities the sale of Genuine Parts and
Accessories to service, wholesale, retail and other customers within Dealer's
Primary Market Area.

         (2) Inventories of Parts and Accessories.

         Dealer shall maintain at all times a stock of parts and accessories
which is adequate to meet its service and wholesale and retail parts sales
responsibilities under this Section 4. Dealer shall also maintain, subject to
the ability of Seller to supply the products ordered by Dealer, a stock of
Genuine Parts and Accessories of an assortment and in quantities adequate to
meet customer demand and for warranty repairs, goodwill adjustments and campaign
corrections made pursuant to this Section 4.

     E.  EVALUATION OF DEALER'S SERVICE AND PARTS PERFORMANCE.

         Dealer's performance of its service and parts responsibilities will be
evaluated by Seller on the basis of such reasonable criteria as Seller may
develop from time to time, including for example:

         (1) Dealer's performance in building and maintaining consumer
confidence in Dealer and in Infiniti Products as measured by surveys or indices
of consumer satisfaction as compared with performance levels achieved by other
Authorized Infiniti Dealers in Seller's Region or District in which Dealer is
located or such other means as may be deemed appropriate by Seller;

         (2) Reasonable parts purchase or sales performance objectives which may
be established from time to time by Seller for Dealer;

         (3) Dealer's advertising and promotion of its parts and service
operations;

         (4) Dealer's performance of its service responsibilities and Dealer's
conduct of its service operations, including without limitation, the financial
results of its service operations, labor sales, warranty claims practices,
training of service personnel, qualification, performance and ability of service
personnel, and inventory of special and essential tools and service equipment,
as compared with Seller's Guides therefor where such have been established
and/or as compared with performance levels achieved

                                                                               5
<PAGE>
by other Authorized Infiniti Dealers in Seller's Region or District in which
Dealer is located;

         (5) Dealer's performance of its parts sales responsibilities and
Dealer's conduct of its parts operations, including without limitation, the
financial results of its parts operations, training of parts personnel, and
inventory of parts, as compared with Seller's Guides therefor where such have
been established and/or as compared with performance levels achieved by other
Authorized Infiniti Dealers in Seller's Region or District in which Dealer is
located; and

         (6) Evaluation reports resulting from any audit or review of Dealer's
service or parts operations by Seller's representatives.

         Seller will periodically evaluate Dealer's performance of its
responsibilities under this Section 4. Evaluations prepared pursuant to this
Section 4 will be discussed with and provided to Dealer, and Dealer shall have
an opportunity to comment, in writing, on such evaluations. Dealer shall
promptly take such action as may be required to correct any deficiencies in
Dealer's performance of its responsibilities under this Section 4.

    SECTION 5. OTHER SELLER AND DEALER RESPONSIBILITIES

    A. ASSISTANCE PROVIDED BY SELLER.

       (1) Training Courses.

           Seller will offer from time to time training courses for selected
Dealer personnel including, without limitation, sales, parts and service
training.

       (2) Manuals.

           Seller will make available to Dealer, for use by Dealer's personnel,
Seller's Manuals or Instructions concerning Dealer's Dealership Operations and
other sources of information and technical data as Seller deems necessary to
permit Dealer to perform its responsibilities under this Agreement. Dealer shall
keep such information and data current and available for consultation by
Dealer's employees.

       (3) Field Personnel.

           To further assist Dealer, Seller will provide to Dealer the advice
and counsel of its field personnel on matters relating to Dealership Operations
such as new vehicle sales, service, parts and accessories. Seller will also
provide advice and counsel in areas such as technical diagnosis, management,
merchandising, personnel training, owner relations, and facilities (including
standard layout plans, facility planning recommendations, and facility location
and planning) used for Dealer's Dealership Operations.

    B. ADVERTISING AND PROMOTION.

       (1) Advertising Standards.

           Both Seller and Dealer recognize the need for maintaining the highest
standards of ethical advertising which is of a quality and dignity consonant
with the reputation and standing of Infiniti Products. Accordingly, neither
Seller nor Dealer shall knowingly publish or cause to be published any
advertising relating to Infiniti Products that is not in compliance with all
applicable federal, state and local laws, ordinances, rules, regulations and
orders or that is likely to mislead, confuse or deceive the public or impair the
goodwill of the manufacturer of the Product, Seller or Dealer or the reputation
of Infiniti Products or the Infiniti Marks.

       (2) Display by Dealer.

           Dealer shall prominently state upon its stationery and other printed
matter that it is an Authorized Infiniti Dealer.

       (3) Sales Promotion.

           Seller will establish and maintain comprehensive advertising programs
to promote the sale of Infiniti Vehicles and will from time to time offer
advertising, sales promotion and sales campaign materials to Dealer. In
addition, to effectively promote the sale of Infiniti Products and the
availability of service for Infiniti Vehicles, Dealer shall establish and
maintain its own advertising and sales promotion programs, including but not
limited to effective showroom displays, and Dealer will have available in
showroom ready condition at least one vehicle in each model line of Infiniti
Vehicles for purposes of demonstration to potential customers.

    C. CUSTOMER SATISFACTION AND REQUIRED DISCLOSURES.

       Dealer is responsible for building and maintaining consumer confidence in
Dealer and in Infiniti Products throughout all aspects of the Dealership
Operations. The Dealer Operating Requirements Addendum and Sections 3 and 4 of
this Agreement require Dealer to achieve satisfactory levels of consumer
satisfaction in all its Dealership Operations and provide means for measuring
Dealer's performance in these areas.

       Dealer further understands and acknowledges that it is of vital
importance to Seller that Infiniti Products are sold and serviced in a manner
which promotes consumer satisfaction and which meet the high quality standards
associated with Seller, the manufacturer of Infiniti Products, the Infiniti
Marks and Infiniti Products in general. Accordingly, Dealer shall fully and
accurately disclose to its customers all material information concerning the
products and services sold by Dealer and the terms of purchase and sale,
including without limitation: the items making up the purchase price; the
source of products sold; and all warranties affecting products sold. Dealer
shall not make any misleading statements or misrepresentations concerning the
products sold by Dealer, the terms of sale, the warranties applicable to such
products, the source of the products, or the recommendations or approvals of
Seller or the manufacturer of Infiniti Products.

       Nothing in this Agreement shall limit or be construed to limit the
products or services which Dealer may sell to its customers. Seller acknowledges
that Dealer is free to sell whatever products or services Dealer may choose in
connection with its sale and servicing of Infiniti Products, subject to Dealer's
obligations under Sections 3 and 4 of this Agreement.

    D. DEALER PERSONNEL.

       Dealer shall organize and maintain, substantially in accordance with
Seller's Standards, a complete dealership organization that includes,

6

<PAGE>
without limitation, a sufficient number of qualified and trained sales managers
and sales people, a competent, trained service manager, a sufficient number of
trained service and customer relations personnel, a competent, trained parts
manager, a sufficient number of trained parts personnel, and a sufficient number
of qualified and trained management and staff to enable Dealer to fulfill its
responsibilities under this Agreement and in accordance with the Dealer
Operating Requirements Addendum. Dealer shall designate at least one member of
its staff who shall be responsible for resolving consumer complaints on behalf
of Dealer. Dealer shall, without expense to Seller, have members of Dealer's
organization attend training courses offered by Seller and Dealer shall
cooperate with and participate in such training courses as may from time to time
be offered by Seller. Dealer agrees that its personnel will meet such
educational, management and technical training Standards as Seller may establish
or approve. Seller may, from time to time, comment on or advise Dealer
concerning the qualifications, performance and ability of Dealer's personnel as
the same affect Dealer's performance of its obligations under this Agreement.

    E. SIGNS.

       Dealer shall, at its expense, display at its Dealership Location, in such
number and at such locations as Seller may reasonably require signs which are
compatible with the design Standards established by Seller and published in
Seller's Manuals or Instructions from time to time. Dealer's use and operation
of signs displayed by Dealer at the Dealership Location and Dealer's display of
any Infiniti Mark shall be subject to Seller's approval and shall be in
accordance with the terms and conditions of Section 5.L and the Dealership
Identification Addendum.

    F. HOURS OF OPERATIONS.

       Dealer recognizes that the service and maintenance needs of the owners of
Infiniti Products and Dealer's own responsibilities to actively and effectively
promote the sale of Infiniti Products can be met properly only if Dealer keeps
its Dealership Facilities open and conducts all of its Dealership Operations
required by this Agreement during hours which are reasonable and convenient for
Dealer's customers. Accordingly, Dealer shall maintain its Dealership Facilities
open for business and shall conduct all Dealership Operations required under
this Agreement during such days and hours as automobile dealers' sales and
service facilities are customarily and lawfully open in Dealer's Primary Market
Area or in the metropolitan area in which Dealer is located.

    G. CAPITAL AND FINANCING.

       Dealer recognizes that its ability to conduct its Dealership Operations
successfully on a day-to-day basis and to effectively perform its other
obligations under this Agreement, including without limitation, its obligations
with respect to Dealership Facilities, new vehicle sales, service and parts
sales, depends to a great extent upon the adequate capitalization of Dealer,
including its maintaining sufficient net working capital and net worth and
employing the same in its Dealership Operations. Dealer shall at all times
maintain and employ such amount and allocation of net working capital and net
worth as are substantially in accordance with Seller's Guides therefor and which
will enable Dealer to fulfill all of its responsibilities under this Agreement.
Dealer shall at all times during the term of this Agreement have flooring
arrangements (wholesale financing) satisfactory to Seller, in an amount
substantially in accordance with Seller's Guides therefor, with a financial
institution acceptable to Seller, and which will enable Dealer to fulfill its
obligations under this Agreement.

    H. DEALER SYSTEMS.

       (1) Accounting System.

           It is in the mutual interest of Seller and Dealer that all Authorized
Infiniti Dealers install and maintain uniform accounting systems and practices,
so that Seller can develop Standards of operating performance which will assist
Dealer in obtaining satisfactory results from its Dealership Operations and
which will assist Seller in formulating policies in the interests of Seller and
all Authorized Infiniti Dealers. Accordingly, Dealer shall install and maintain
an accounting system, not exclusive of any other system, in accordance with
Seller's Infiniti Dealer Accounting System Manual, as the same may from time to
time be amended, revised or supplemented.

       (2) Infinitinet System.

           Seller has developed the Infinitinet System, which is a business
processing and electronic data communication system designed to facilitate
accurate and prompt reporting of dealership operational and financial data,
submission of parts orders and warranty claims, parts cataloging, dealership
training systems and processing of information with respect to the Dealership
Operations. Such data is used by Seller, among other things, to develop
composite operating statistics which are useful to Dealer and Seller in
assessing Dealer's progress in meeting its obligations under this Agreement, to
provide a basis for recommendations which Seller may make to Dealer from time to
time to assist Dealer in improving Dealership Operations, to assist Seller in
developing Standards of operating performance which will assist Dealer in
obtaining satisfactory results from its Dealership Operations, to assist Seller
in formulating policies in the interest of Seller and all Authorized Infiniti
Dealers, and to provide sales reporting information relied upon by Seller in
providing Infiniti Vehicles to Dealer. Accordingly, Dealer shall install and
maintain the Infinitinet System as configured by Seller from time to time.

    I. RECORDS AND REPORTS.

       (1) Financial Statements.

           Dealer shall furnish to Seller, on or before the tenth (10th) day of
each month, in a manner acceptable to Seller, complete and accurate financial
and operating statements which fairly present, in accordance with generally
accepted accounting principles, Dealer's financial condition as of the end of
the preceding month and the results of Dealer's Dealership Operations for the
preceding month and for that portion of Dealer's fiscal year then ended. Dealer
shall also furnish for such periods reports of Dealer's sales and inventory of
Infiniti Products. Dealer shall also promptly furnish to Seller a copy of any
adjusted annual financial or operating statement prepared by or for Dealer.

                                                                               7

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       (2) Sales Records and Reports.

           Dealer shall prepare and retain for a minimum of two (2) years,
complete and up to date records covering its sales of Infiniti Products. To
assist Seller in evaluating, among other things, current market trends, to
provide information for use in the adjustment of production and distribution
schedules, to provide information used by Seller in providing Infiniti Vehicles
to Dealer, and to provide Seller with accurate records of the ownership of
Infiniti Vehicles for various purposes including warranty records and ownership
notification, Dealer shall accurately submit to Seller such information with
respect to Dealer's sales of Infiniti Products as Seller may reasonably require
as and in the form or manner specified by Seller, at or as soon as possible
after the close of each business day on which such Infiniti Products are sold by
Dealer. If Dealer becomes aware that any information submitted by Dealer to
Seller hereunder is or has become inaccurate, Dealer will immediately take all
steps necessary to advise Seller of and to correct such inaccuracy. Should
Seller determine or discover that any report submitted hereunder by Dealer is or
has become inaccurate, Seller may take any steps it deems necessary or
appropriate to correct such inaccuracy and to adjust its records, calculations
or procedures with respect to Dealer's reported sales to correct the effect of
such inaccuracy or to prevent additional inaccurate reports from being made.

       (3) Service Records.

           Dealer shall prepare and retain for a minimum of two (2) years, in
accordance with the procedures specified in the Warranty Manual: records in
support of applications for payment for pre-delivery inspection and service,
warranty repairs and goodwill adjustments, and campaign inspections and
corrections performed by Dealer; claims for parts compensation; and
applications for discounts, allowances, refunds or credits.

       (4) Business Plan.

           Dealer shall develop and submit annually a business plan pursuant to
the Dealer Operating Requirements Addendum.

       (5) Other Reports.

           Dealer shall furnish to Seller such other records or reports
concerning its Dealership Operations as Seller may reasonably require from time
to time.

    J. RIGHT OF INSPECTION.

       Seller shall have the right, at all reasonable times during regular
business hours, to inspect the Dealership Facilities and to examine, audit and
make and take copies of all records, accounts and supporting data relating to
the sale, sales reporting, service and repair of Infiniti Products by Dealer.
Whenever possible, Seller shall attempt to provide Dealer with advance notice of
an audit or examination of Dealer's operations.

    K. CONFIDENTIALITY.

       Seller will not furnish to any third party financial statements or other
confidential data, excluding sales records or reports, submitted by Dealer to
Seller, except as an unidentified part of a composite or coded report, unless
disclosure is authorized by Dealer or is required by law, or unless such
information is pertinent to judicial or governmental administrative proceedings.

    L. USE OF INFINITI MARKS.

       Seller grants Dealer the non-exclusive right to identify itself as an
Authorized Infiniti Dealer and to display at the Dealership Location and use, in
connection with the sale and service of Infiniti Products, the Infiniti Marks.
The Infiniti Marks may not be used as part of Dealer's name or trade name
without Seller's written consent. No entity owned by or affiliated with Dealer
or any of its owners may use any Infiniti Mark without Seller's prior written
consent. Dealer shall not make any use of any Infiniti Mark which is
inconsistent with Seller's policies concerning trademark use. Dealer may not,
either directly or indirectly, display any Infiniti Marks at any location or
facility other than those identified in the Dealership Facilities Addendum to
this Agreement, without the prior written consent of Seller. Except as
authorized herein, Dealer shall not make use of any Infiniti Mark, and Dealer
shall neither have nor claim any rights in respect of any Infiniti Mark. Dealer
shall comply with any of Seller's Manuals or Instructions regarding the use of
Infiniti Marks as may be issued to Dealer from time to time. Dealer shall
promptly change or discontinue its use of any Infiniti Marks upon Seller's
request. Any authorization granted may be withdrawn by Seller at any time and,
in any event, shall cease immediately upon the effective date of termination of
this Agreement.

       If Seller institutes litigation to effect or enforce compliance with this
Section 5.L, the prevailing party in such litigation shall be entitled to
reimbursement for its costs and expenses in such litigation, including
reasonable attorney's fees.

    SECTION 6. PURCHASE AND DELIVERY

    A. DEALER PURCHASES.

       (1) Infiniti Vehicles.

           From time to time Seller will advise Dealer of the number and model
lines of Infiniti Vehicles which Seller has available for sale to Dealer, and
subject to this Section 6, Dealer shall have the right to purchase such Infiniti
Vehicles. Seller will distribute Infiniti Vehicles to Authorized Infiniti
Dealers in accordance with Seller's written distribution policies and procedures
as the same may be in effect from time to time. Seller will provide to Dealer a
written explanation of the method used by Seller to distribute Infiniti Vehicles
to Authorized Infiniti Dealers. Dealer recognizes that there are numerous
factors which affect the availability of Infiniti Vehicles to Seller and to
Dealer including, without limitation, production capacity, sales potential in
Dealer's and other Primary Market Areas, varying consumer demand, weather and
transportation conditions, and state and federal government requirements. Since
such factors may affect individual dealers differently, Seller reserves to
itself sole discretion to distribute Infiniti Vehicles in a fair and consistent
manner, and its decisions in such matters shall be final.

8
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       (2) Genuine Parts and Accessories.

           Dealer shall submit to Seller firm orders for Genuine Parts and
Accessories in such quantity and variety as are reasonably necessary to fulfill
Dealer's obligations under this Agreement. All orders shall be submitted by
Dealer in the manner specified by Seller and in accordance with Seller's Parts
and Accessories Policy and Procedure Manual, may be accepted in whole or in part
by Seller, and shall be effective only upon acceptance thereof by Seller at its
home office in California (but without necessity of any notice of acceptance by
Seller to Dealer). Such orders shall not be cancellable by Dealer after
acceptance and shipment by Seller, except in accordance with Section 7 of this
Agreement.

       (3) Other Products and Services.

           Dealer may submit to Seller firm orders for such other products and
services as may be offered for sale by Seller to Dealer from time to time in
such quantity and variety as are reasonably necessary to fulfill Dealer's
obligations under this Agreement. All orders shall be submitted by Dealer in
the manner specified by Seller and in accordance with Seller's procedures
therefor, may be accepted in whole or in part by Seller, and shall be effective
only upon acceptance thereof by Seller at its home office in California
(but without necessity of any notice of acceptance by Seller to Dealer). Such
orders shall not be cancellable by Dealer after acceptance and shipment by
Seller, except in accordance with Section 7 of this Agreement.

    B. DELAYS IN DELIVERY.

       Seller shall not be liable for failure or delay in delivery to Dealer of
Infiniti Products which Seller has previously agreed to deliver to Dealer where
such failure or delay is due to cause or causes beyond the control or without
the fault or negligence of Seller.

    C. SHIPMENT OF INFINITI PRODUCTS.

       (1) Infiniti Vehicles.

           Seller will ship Infiniti Vehicles to Dealer by whatever mode of
transportation, by whatever route, and from whatever point Seller may select.
Dealer shall pay to Seller in connection with Infiniti Vehicles delivered to
Dealer the applicable destination charges that are established for Dealer by
Seller and that are in effect at the time of shipment. Dealer shall bear the
risk of loss and damage to Infiniti Vehicles during transportation from the
point of shipment; however, Seller will, if requested by Dealer in such manner
and within such time as Seller shall from time to time specify, prosecute claims
for loss of or damage to Infiniti Vehicles during said transportation against
the responsible carrier for and on behalf of Dealer.

       (2) Genuine Parts and Accessories.

           Seller will ship Genuine Parts and Accessories to Dealer by whatever
mode of transportation, by whatever route, and from whatever point Seller may
select. Dealer shall bear the risk of loss and damage to Genuine Parts and
Accessories during transportation from the point of shipment.

    D. PASSAGE OF TITLE.

       Title to each Infiniti Product shall pass from Seller to Dealer, or to
the financial institution designated by Dealer, upon delivery of said Product to
Dealer or to a carrier for transportation to Dealer, whichever occurs first.

    E. SECURITY INTEREST.

       (1) Grant of Security Interest.

           As security for the full payment of all sums from time to time owed
by Dealer to Seller under this Agreement, whether such sums are now, or
hereafter become due and owing, Dealer hereby grants to Seller a security
interest in the following (collectively referred to as "Collateral"):

           (i) All non-vehicle inventory of Dealer, including without
limitation, all Genuine Parts and Accessories delivered by Seller to Dealer
hereunder on account (all such inventory hereinafter referred to collectively as
"Inventory" and individually as "Item of Inventory"); and

           (ii) All proceeds from any of the foregoing, including without
limitation, insurance payable by reason of the loss, damage or destruction of
any Item of Inventory; and all accounts and chattel paper of Dealer arising
from its sale, lease, or other disposition of Inventory now existing or
hereafter arising, and all liens, securities, guarantees, remedies and
privileges pertaining thereto, together with all rights and liens of Dealer
relating thereto.

       (2) Default in Payment.

           Dealer shall be in default of this Section 6 if: (i) Dealer shall
fail to pay any amounts secured hereby when due or fail to perform any
obligations under this Section 6 in a timely manner; (ii) there shall occur any
material adverse change in the financial condition of Dealer; or (iii)Dealer
shall dissolve or become insolvent or bankrupt; and, in any such case, Seller
may declare all sums secured by this Section 6.E immediately due and payable and
Seller shall have all the rights and remedies afforded to a secured party after
default under the Uniform Commercial Code or other applicable law in effect on
the date of this Agreement.

       (3) Assembly of Collateral, Payment of Costs, Notices.

           Dealer shall, if requested by Seller upon the occurrence of any
default under the foregoing Section 6.E.2 assemble the Collateral and make it
available to Seller at a place or places designated by Seller. Dealer also shall
pay all costs of Seller, including without limitation, attorneys' fees incurred
with respect to the enforcement of any of Seller's rights under this Section 6.

       (4) Recording, Further Assurances.

           Dealer shall execute and deliver such financing statements and such
other instruments or documents and take any other action as Seller may request
in order to create or maintain the security interest intended to be created by
this Section 6.E or to enable Seller to exercise and enforce its rights
hereunder. A carbon, photographic or other reproduction of this Agreement shall
be sufficient as a financing statement

                                                                               9
<PAGE>
and may be filed in lieu of a financing statement in any and all jurisdictions
which accept such reproductions.

     (5) Records and Schedules of Inventory.

         Dealer shall keep accurate records itemizing and describing the kind,
type and quantity of Inventory and shall furnish to Seller within five (5) days
of receipt of Seller's request therefor, with a current schedule of inventory in
form and substance satisfactory to Seller ("Schedule of Inventory"), which shall
be true and accurate in all respects. A physical inventory shall be conducted no
less than annually in connection with preparation of year-end financial
statements of Dealer and, at Seller's request, a report of such inventory shall
be promptly provided to Seller.

     F.  CHARGES FOR STORAGE AND DIVERSIONS.

         Dealer shall be responsible for and shall pay all charges for
demurrage, storage and other expense accruing after shipment to Dealer or to a
carrier for transportation to Dealer. If diversions of shipments are made upon
Dealer's request or are made by Seller as a result of Dealer's failure or
refusal to accept shipments made pursuant to Dealer's orders, Dealer agrees to
pay all additional charges and expenses incident to such diversions.

     G.  CHANGES IN INFINITI PRODUCTS.

         Seller shall have the right in its sole discretion to discontinue the
supply, or make changes in the design or component materials, of any Infiniti
Product at any time. Seller shall be under no liability to Dealer on account of
any such changes and shall not be required as a result of any such changes to
make any changes to Infiniti Products previously purchased by Dealer. No change
shall be considered a model year change unless so specified by Seller.

     SECTION 7. PRICING

     A.  INFINITI VEHICLES.

         At any time prior to shipment (or delivery to a carrier for
transportation to Dealer) of any Infiniti Vehicle, Seller may, without prior
notice and without incurring any liability to Dealer or anyone else, including
any customer of Dealer, change at any time and from time to time the price,
discount, allowance or other terms of sale of any Infiniti Vehicle offered for
sale by Seller. Except with respect to the establishment of initial prices for a
new model year vehicle or for any new model or body type, Seller will notify
Dealer by mailgram or other acceptable means of any such change in price as soon
as reasonably practicable, and Dealer may, by notice to Seller within ten (10)
days after such notification, cancel any offer to purchase Infiniti Vehicles
affected by such change, provided that Seller has not notified Dealer of its
acceptance of Dealer's offer on or prior to the date such notification by Dealer
is received by Seller.

     B.  GENUINE PARTS AND ACCESSORIES.

         Seller may, without prior notice and without incurring any liability to
Dealer or anyone else, including any customer of Dealer, change at any time and
from time to time the price, discount, allowance or other terms of sale of any
Genuine Part or Accessory offered for sale by Seller, and any such change in
price, discount, allowance or other terms of sale shall apply to all such
Genuine Parts and Accessories whether or not an order has been submitted by
Dealer, but not to Genuine Parts and Accessories for which Seller has accepted
and processed Dealer's order prior to the effective date of such change. Seller
will notify Dealer of any such change in price as soon as is reasonably
practicable. Dealer may, by notice to Seller cancel any order for Genuine Parts
and Accessories affected by such change which was placed before such
notification was given, provided that such Genuine Parts and Accessories have
not been shipped to Dealer or delivered to a carrier for transportation to
Dealer on or prior to the date such notification by Dealer is received by
Seller.

     C.  OTHER PRODUCTS AND SERVICES.

         Seller may, without prior notice and without incurring any liability to
Dealer or anyone else, including any customer of Dealer, change at any time and
from time to time the price, discount, allowance or other terms of sale of any
product or service (other than Infiniti Vehicles or Genuine Parts and
Accessories, terms concerning which are provided for separately herein) offered
for sale by Seller, and any such change in price, discount, allowance or other
terms of sale shall apply to such product or service whether or not an order has
been submitted by Dealer, but not to such products or services for which Seller
has accepted and processed Dealer's order prior to the effective date of such
change. Seller will notify Dealer of any such change in price as soon as is
reasonably practicable. Dealer may, by notice to Seller, cancel any order for
such product or service affected by such change which was placed before such
notification was given, provided that such product or service has not been
shipped or rendered to Dealer or delivered to a carrier for transportation to
Dealer on or prior to the date such notification of cancellation by Dealer is
received by Seller.

     SECTION 8. PAYMENT

     A.  PAYMENT FOR VEHICLES.

         Payment by Dealer for Infiniti Vehicles must be made in accordance with
the applicable prices, charges, discounts, allowances and other terms of sale
established by Seller either: (i) in accordance with wholesale financing
arrangements that at the time of delivery to Dealer or to a carrier for
transportation to Dealer of such Infiniti Vehicles, whichever shall first occur,
are in effect between Seller, Dealer and a financing institution; or (ii) prior
to delivery to Dealer or to a carrier for transportation to Dealer, whichever
shall first occur, by cash or such other medium of payment as Seller may agree
to accept.

     B.  PAYMENT FOR PARTS AND ACCESSORIES.

         Parts, equipment, accessories and other products and services will
normally be billed by Seller to Dealer on Seller's invoices, which shall be due
the tenth (10th) of the month following the month of shipment of such products
and services; provided, however, Seller reserves the right to place any and all
sales of such items on a C.O.D. or cash in advance basis, without notice;
provided further, however,

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that Seller will endeavor to provide Dealer with prior notice if in Seller's
sole judgment such notice would be practicable.

     C. ACCOUNTS PAYABLE.

        (l) Right of Set Off.

        In addition to any right of set off provided by law, all sums due Dealer
shall be considered net of indebtedness of Dealer to Seller, and Seller may
deduct any amounts due or to become due from Dealer to Seller or any amounts
held by Seller from any sums or accounts due from Seller to Dealer.

        (2) Liquidated Damages.

            (i) Liquidated Damages for Delinquent Payments.

                In the event that Dealer fails to pay Seller in full any amounts
owed by Dealer to Seller when due, Dealer shall pay Seller a delinquency charge
of one percent (1%) per month of such amount or amounts to compensate Seller for
its costs of carrying and collection; provided, however, that Seller agrees that
it will not assess any deliquency charge on an overdue account which has a total
outstanding balance of less than $1,000.00, unless such account is more than
ninety (90) days overdue. Dealer and Seller agree that such charge is to be
assessed not as a penalty, but as liquidated damages under California Civil
Code ss. 1671(b) based on Seller's reasonable estimate of the losses which will
be suffered by Seller as a result of such delinquent payment or payments. The
imposition of such delinquency charges shall not imply or constitute any
agreement to forbear collection of a delinquent account.

            (ii) Liquidated Damages for Improper Payments to Dealer.

                Seller may, from time to time, conduct audits or reviews of
Dealer's books and records pursuant to Section 5.J of this Agreement. If any
such audit or review results in a determination by Seller that Dealer was or is
not entitled to receive payment from Seller, Seller may debit Dealer's account
in such amounts as Seller shall determine were improperly paid to Dealer. Such a
determination may be based on Dealer's failure to comply with applicable rules
or procedures or on Dealer's submission of false or inaccurate information to
Seller. In addition, Seller may assess and, if it does, Dealer will pay a
delinquency charge of one percent (1%) per month of such amount or amounts
improperly paid by Seller to Dealer to compensate Seller for its costs of
auditing, loss of funds and collection. Dealer and Seller agree that such charge
is to be assessed not as a penalty, but as liquidated damages under California
Civil Code ss. 1671 (b) based on Seller's reasonable estimate of the losses
which will be suffered by Seller as a result of such improper payment or
payments. The imposition of such delinquency charges shall not imply or
constitute any agreement to forbear collection of a delinquent account.

     D. COLLECTION OF TAXES BY DEALER.

        Dealer hereby represents and warrants that all Infiniti Products
purchased from Seller are purchased for resale in the ordinary course of
Dealer's business. Dealer further represents and warrants that Dealer has
obtained all licenses and complied with all other requirements to collect sales,
use or other taxes incurred in any such resale transaction, and that dealer will
furnish evidence thereof to Seller, at Seller's request. If Dealer purchases any
Infiniti Products other than for resale, or puts any Infiniti Products to a
taxable use, Dealer shall pay directly to the appropriate taxing authority any
sales, use or similar taxes incurred as a result of such use or purchase, to
file any tax returns required in connection therewith, and to hold Seller
harmless from any claims or demands with respect thereto.

     SECTION 9. WARRANTIES

     The only warranties that shall be applicable to Infiniti Products (or any
components thereof) shall be such written warranty or warranties as may be
furnished by Seller and as stated in the Warranty Manual or Seller's Parts and
Accessories Policy and Procedure Manual, as the same may be revised from time to
time. Except for its express limited liability under such written warranties,
neither the manufacturer of Infiniti Products nor Seller assumes, or authorizes
any other person or party, including without limitation Dealer, to assume on
their behalf any other obligation or liability in connection with any Infiniti
Product (or component thereof). Any obligations or liabilities assumed by Dealer
which are in addition to Seller's written warranties shall be solely the
responsibility of Dealer. Dealer shall expressly incorporate in full and without
modification any warranty furnished by Seller with an Ininiti Vehicle as a
conspicuous part of each order form or other contract for the sale of such
Infiniti Vehicle by Dealer to any buyer. Dealer shall make available to the
buyer of each Infiniti Product prior to the purchase of such Infiniti Product,
copies of such applicable warranties as may be furnished by Seller. Dealer shall
also provide to the buyer of each Infiniti Product, in full and without
modification, any owner's manual, warranty booklet or other owner information
which Seller may provide to Dealer for delivery with such Infiniti Product.
Dealer agrees to abide by and implement in all other respects Seller's warranty
procedures then in effect.

     SECTION 10. INDEMNIFICATION

     A. INDEMNIFICATION OF DEALER.

        Subject to Section 10.C, and upon Dealer's written request, Seller
        shall:

        (1) Defend Dealer against any and all claims that during the term of
this Agreement may arise, commence or be asserted against Dealer in any action
concerning or alleging:

        (a) Bodily injury or property damage arising out of an occurrence caused
solely by a manufacturing defect or alleged manufacturing defect in an Infiniti
Product supplied by Seller, except for any manufacturing defect in tires,
provided that the defect could not have reasonably been discovered by Dealer
during the pre-delivery inspection of the product required by Section 4.B.1 of
this Agreement;

        (b) Bodily injury or property damage arising out of an occurrence caused
solely by a defect or alleged defect in the design of an Infiniti Product
supplied by Seller, except for a defect or alleged defect in the design of
tires; and

                                                                              11

<PAGE>

        (c) Any substantial damage occurring to a new Infiniti Product and
repaired by Seller from the time the product left the manufacturer's assembly
plant to the time it was delivered to Dealer's designated location or to a
carrier for transportation to Dealer, whichever occurred first, provided Seller
failed to notify Dealer of such damage and repair prior to delivery of the
product to the first retail customer; and

        (d) Breach of Seller's warranty of an Infiniti Product which is not, in
whole or part, the result of Dealer's sales, service or repair practices or
conduct; and

       (2) Indemnify and hold Dealer harmless from any and all settlements made
which are approved by Seller and final judgments rendered with respect to any
claims described in Section 10.A.1; provided, however, that Seller shall have
no obligation to indemnify or hold Dealer harmless unless Dealer: (i) promptly
notifies Seller of the assertion of such claim and the commencement of such
action against Dealer; (ii) cooperates fully in the defense of such
action in such manner and to such extent as Seller may reasonably require; (iii)
consents to the employment of attorneys selected by Seller and agrees to waive
any conflict of interest then existent or which may later arise, thereby
enabling Seller's selected attorneys to represent Seller and/or the manufacturer
of an Infiniti Product throughout the defense of the claim; and (iv) withdraws
any actions (including cross-claims) filed against Seller or the manufacturer of
an Infiniti Product arising out of the circumstances for which Dealer seeks
indemnity. Dealer shall pay all costs of its own defense incurred prior to
Seller's assumption of Dealer's defense and thereafter to the extent that Dealer
employs attorneys in addition to those selected by Seller.

       (3) Seller may offset any recovery on Dealer's behalf against any
indemnification that may be required under this Section 10 including, without
limitation, attorneys fees paid by Seller pursuant to this Section 10.A and the
amount of any settlement or judgment paid by Seller.

     B. INDEMNIFICATION OF SELLER.

        Subject to Section 10.C and upon Seller's written request, Dealer shall:

        (1) Defend Seller against any and all claims that during the term of
this Agreement may arise, commence or be asserted against Seller in any action
concerning or alleging:

            (a) Dealer's failure to comply, in whole or in part, with any
obligation of Dealer under this Agreement;

            (b) Any negligence, error, omission or act of Dealer in connection
with the preparation, repair or service (including warranty service, goodwill
adjustments, and campaign inspections and corrections) by Dealer of Infiniti
Products;

            (c) Any modification or alteration made by or on behalf of Dealer to
an Infiniti Product, except those made pursuant to the express written
instruction or with the express written approval of Seller;

            (d) Dealer's breach of any agreement between Dealer and Dealer's
customer or other third party;

            (e) Misleading, libelous or tortious statements, misrepresentations
or deceptive or unfair practices by Dealer, directly or indirectly, to Seller, a
customer or other third party including, without limitation, Dealer's failure to
comply with Section 5.B of this Agreement;

            (f) Dealer's breach of any contract or warranty other than a
contract with or warranty of Seller or the manufacturer of an Infiniti Product;
or

            (g) Any change in the employment status or in the terms or
conditions of employment of any officer, employee or agent of Dealer or of any
Principal Owner, Other Owner or Executive Manager including, but not limited to
claims for breach of employment contract, wrongful termination or discharge,
tortious interference with contract or economic advantage, and similar claims;
and

          (2) Indemnify and hold Seller harmless from any and all settlements
made and final judgments rendered with respect to any claims described in
Section 10.B.1; provided, however, that Dealer shall have no obligation to
indemnify or hold Seller harmless unless Seller: (i) promptly notifies Dealer of
the assertion of such claim and the commencement of such action against Seller;
(ii) cooperates fully in the defense of such action in such manner and to such
extent as Dealer may reasonably require; (iii) consents to the employment of
attorneys selected by Dealer and agrees to waive any conflict of interest then
existent or which may later arise, thereby enabling Dealer's selected attorneys
to represent Dealer throughout the defense of the claim; and (iv) withdraws any
actions (including cross-claims) filed against Dealer arising out of the
circumstances for which Seller seeks indemnity. Seller shall pay all costs of
its own defense incurred prior to Dealer's assumption of Seller's defense and
thereafter to the extent that Seller employs attorneys in addition to those
selected by Dealer.

     C. CONDITIONS AND EXCEPTIONS TO INDEMNIFICATION.

        (1) If the allegations asserted in any action or if any facts
established during or with respect to any action would require Seller to defend
and indemnify Dealer under Section 10.A and Dealer to defend and indemnify
Seller under Section 10.B, Seller and Dealer shall each be responsible for its
own defense in such an action and there shall be no obligation or responsibility
in connection with any defense, judgment, settlement or expenses of such action
as between Seller and Dealer.

        (2) In undertaking its obligations to defend and/or indemnify each
other, Dealer and Seller may make their defense and/or indemnification
conditional on the continued existence of the state of facts as then known to
such party and may provide for the withdrawal of such defense and/or
indemnification at such time as facts arise which, if known at the time of the
original request for a defense and/or indemnification, would have caused either
Dealer or Seller to refuse such request. In the event that subsequent
developments in a case make clear that the allegations which initially justified
acceptance of a request for a defense and/or indemnification are no longer at
issue therein or that the claims no longer meet the description of those for
which indemnification is required hereunder, any party providing a defense

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and/or indemnification hereunder may terminate such defense and/or
indemnification of the other party. The party withdrawing from its defense
and/or indemnification to defend and/or indemnify shall give notice of its
withdrawal to the indemnifying party. Moreover, the withdrawing party shall be
responsible for all costs and expenses of defense up to the date of the other
party's receipt of the notice of withdrawal.

     SECTION 11. TERMINATION

     A. TERMINATION DUE TO CERTAIN ACTS OR EVENTS.

        The following represent events which are within the control of or
originate from actions taken by Dealer or its management or owners and which are
so contrary to the intent and purpose of this Agreement that they warrant its
termination:

        (1) Any actual or attempted sale, transfer, assignment or delegation,
whether by operation of law or otherwise, by Dealer of an interest in or right,
privilege or obligation under this Agreement, or of the principal assets
necessary for the performance of Dealer's responsibilities under this Agreement,
without, in either case, the prior written consent of Seller having been
obtained, which consent shall not be unreasonably withheld;

        (2) Subject to the provisions of Section 14 hereof, a change, by
operation of law or otherwise, in the direct or indirect ownership of Dealer,
whether voluntary or involuntary, from that set forth in the Final Article of
this Agreement, except as expressly permitted herein, without the prior written
consent of Seller having been obtained, which consent shall not be unreasonably
withheld;

        (3) Removal, resignation, withdrawal or elimination from Dealer for any
reason of the Executive Manager of Dealer; provided, however, Seller shall give
Dealer a reasonable period of time within which to replace such person with an
Executive Manager satisfactory to Dealer and Seller in accordance with Article
Fourth of this Agreement; or the failure of Dealer to retain an Executive
Manager who, in accordance with Article Fourth of this Agreement, in Seller's
reasonable opinion, is competent, possesses the requisite qualifications for the
position, and who will act in a manner consistent with the continued best
interests of both Seller and Dealer;

        (4) The failure of Dealer to maintain the Dealership Facilities open for
business or to conduct all the Dealership Operations required by this Agreement
during and for not less than the hours customary and lawful in Dealer's Primary
Market Area or in the metropolitan area in which Dealer is located for seven (7)
consecutive days, unless such failure is caused by fire, flood, earthquake or
other act of God;

        (5) Any undertaking by Dealer to conduct, directly or indirectly, any of
the Dealership Operations at a location or facility other than that which is
specified in the current Dealership Facilities Addendum for that Dealership
Operation;

        (6) The failure of Dealer to establish or maintain wholesale financing
arrangements which are in accordance with Seller's Guides and which are
reasonably acceptable to Seller with banks or other financial institutions
approved by Seller for use in connection with Dealer's purchase of Infiniti
Vehicles, unless Seller shall have agreed to accept another medium of payment;

        (7) Insolvency of Dealer; voluntary institution by Dealer of any
proceeding under the federal bankruptcy laws or under any state insolvency law;
institution against Dealer of any proceeding under the federal bankruptcy laws
or under any state insolvency law which is not vacated within thirty (30) days
from the institution thereof; appointment of a receiver, trustee or other
officer having similar powers for Dealer or Dealer's business, provided such
appointment is not vacated within thirty (30) days of the date of such
appointment; execution by Dealer of an assignment for the benefit of creditors;
or any levy under attachment, foreclosure, execution or similar process whereby
a third party acquires rights to a significant portion of the assets of Dealer
necessary for the performance of Dealer's responsibilities under this Agreement
or to the operation or ownership of Dealer, which is not within thirty (30)
days from the date of such levy vacated or removed by payment or bonding;

        (8) Any material misrepresentation by Dealer or any person named in the
Final Article of this Agreement as to any fact relied on by Seller in entering
into, amending or continuing with this Agreement, including without limitation
any representation concerning the ownership, management or capitalization of
Dealer;

        (9) The conviction in a court of original judrisdiction of Dealer or of
any Principal Owner or Executive Manager of a crime affecting the Dealership
Operations or of any felony; provided, however, that a convicted Executive
Manager's ownership interest in Dealer shall not be an event warranting
termination of this Agreement if the individual is no longer employed by Dealer
or involved in any way in the management or operation of Dealer and Dealer has
made reasonable efforts to obtain the individual's divestiture of his ownership
interest in Dealer; or any willful failure of Dealer to comply with the
provisions of any laws, ordinances, rules, regulations, or orders relating to
the conduct of its Dealership Operations including, without limitation, the sale
and servicing of Infiniti Products.

        (10) Submission by Dealer to Seller of: (i) a knowingly false or
fraudulent report or statement; (ii) a knowingly false or fraudulent claim (or
statement in support thereof), for payment, reimbursement or for any discount,
allowance, refund, rebate, credit or other incentive under any plan that may be
offered by Seller, whether or not Dealer offers or makes restitution; (iii)
false financial information; (iv) false sales reporting data; or (v) any false
report or statement relating to pre-delivery inspection, testing, warranties,
service, repair or maintenance required to be performed by Dealer.

        Upon the occurrence of any of the foregoing events, Seller may terminate
this Agreement by giving Dealer notice thereof, such termination to be effective
upon the date specified in such notice, or such later date as may be required by
any applicable statute.

                                                                              13

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     B. TERMINATION BY SELLER FOR NON-PERFORMANCE BY DEALER.

        (1) If, based upon the evaluations thereof made by Seller, Dealer shall
fail to substantially fulfill its responsibilities with respect to:

            (a) Sales of new Infiniti Vehicles and the other responsibilities of
Dealer set forth in Section 3 of this Agreement;

            (b) Maintenance of the Dealership Facilities and the Dealership
Location set forth in Section 2 of this Agreement;

            (c) Service of Infiniti Vehicles and sale and service of Genuine
Parts and Accessories and the other responsibilities of Dealer set forth in
Section 4 of this Agreement;

            (d) The other responsibilities assumed by Dealer in this Agreement
including, without limitation, Dealer's failure to:

                (i) Timely submit accurate sales, service and financial
information concerning its Dealership Operations, ownership or management and
related supporting data, as required under this Agreement or as may be
reasonably requested by Seller;

                (ii) Permit Seller to make an examination or audit of Dealer's
accounts and records concerning its Dealership Operations after receipt of
notice from Seller requesting such permission or information;

                (iii) Pay Seller for any Infiniti Products or any other products
or services purchased by Dealer from Seller, in accordance with the terms and
conditions of sale; or

                (iv) Maintain net worth and working capital substantially in
accordance with Seller's Guides therefor; or

                (v) Fulfill Dealer's obligations under the Dealer Operating
Requirements Addendum; or

     (2) In the event that any of the following occur:

        (i) any dispute, disagreement or controversy between or among Dealer and
any third party or between or among the owners or management personnel of
Dealer relating to the management or ownership of Dealer develops or exists
which, in the reasonable opinion of Seller, tends to adversely affect the
conduct of the Dealership Operations or the interests of Dealer or Seller; or

        (ii) any other act or activity of Dealer, or any of its owners or
management occurs, which substantially impairs the reputation or financial
standing of Dealer or of any of its management subsequent to the execution of
this Agreement:

        Seller will notify Dealer of such failure and will review with Dealer
the nature and extent of such failure and the reasons which, in Seller's or
Dealer's opinion, account for such failure.

        Thereafter, Seller will provide Dealer with a reasonable opportunity to
correct the failure. If Dealer fails to make substantial progress towards
remedying such failure before the expiration of such period, Seller may
terminate this Agreement by giving Dealer notice of termination, such
termination to be effective at least ninety (90) days after such notice is
given.

        During such period Dealer will commence such actions as may be
necessary so that the termination obligations of Seller and Dealer set forth in
this Agreement may be fulfilled as promptly as practicable.

     C. TERMINATION BECAUSE OF DEATH OR PHYSICAL OR MENTAL
        INCAPACITY OF PRINCIPAL OWNER.

        This Agreement is a personal services agreement and has been entered
into by Seller in reliance on Dealer's being owned by the Principal Owner(s).
Seller (subject to Section 14 hereof) may terminate this Agreement by giving
notice to Dealer upon the death of any of the Principal Owner(s) or if Seller
in good faith determines that any Principal Owner is so physically or mentally
incapacitated as to be unable to discharge his or her responsibility to the
operating management of Dealer. Unless deferred as hereinafter provided, the
effective date of such termination shall be not less than ninety (90) days from
the date such notice is given to Dealer.

        To facilitate the orderly termination of the business relationship
between Seller and Dealer and of the Dealership Operations, Seller may, in its
sole discretion, defer the effective date of such termination and continue to
operate with Dealer under the terms of this Agreement for a period of time, to
be determined by Seller, of up to one (1) year from the date such notice of
termination is given if, within sixty (60) days from the date of said notice,
the executor or representative of the deceased or incapacitated Principal Owner
or a surviving Principal Owner shall give to Seller written request for such
deferment. This Agreement shall automatically terminate without further notice
or action by Seller upon the expiration of any such deferment.

     D. TERMINATION FOR FAILURE OF SELLER OR DEALER TO BE LICENSED.

        If Seller or Dealer shall fail to secure or maintain any license, permit
or authorization required by either of them for their performance of any
obligation under or in connection with this Agreement, or if such license,
permit or authorization is suspended or revoked, irrespective of the cause, and
such suspension or revocation continues for a period of seven (7) days, either
party may immediately terminate this Agreement by giving notice to the other
party.

     E. TERMINATION BY DEALER.

        Dealer has the right to terminate this Agreement at any time by giving
notice to Seller, such termination to be effective thirty (30) days after the
giving of such notice (unless the thirty (30) day notice period is waived in
writing by Seller) or on such other date as may be mutually agreed to in writing
by Seller and Dealer.

     F. TERMINATION BY SELLER BECAUSE OF A CHANGE OF SELLER'S METHOD OF
        DISTRIBUTION OR DECISION BY SELLER TO CEASE DISTRIBUTION OF INFINITI
        VEHICLES.

        If Seller should elect or be required to discontinue its present method
of distributing Infiniti Vehicles, or if Seller should elect or be required to
cease selling or distributing Infiniti Vehicles, Seller may terminate this
Agreement by giving Dealer notice and such termination will be effective not
less than one (1) year after such notice is given.

14

<PAGE>
     G. TERMINATION UPON ENTERING INTO A NEW OR AMENDED SALES
        AND SERVICE AGREEMENT OR ADDENDA.

        Seller may terminate this Agreement at any time by giving Dealer at
least ninety (90) days' prior notice thereof and offering to enter into a new
or amended form of Agreement or Addenda with Dealer in a form being offered
generally to Authorized Infiniti Dealers; provided, however, that Seller may
issue a new or revised Notice of Primary Market Area pursuant to Section 1.K or
a new or revised Product Addendum pursuant to Section 1.U.

        Unless otherwise agreed in writing, the rights and obligations of Dealer
that may otherwise become applicable upon termination or expiration of the term
of this Agreement shall not be applicable if Seller and Dealer enter into a new
or superseding Dealer Sales and Service Agreement, and the rights and
obligations of the parties hereunder shall continue under the terms and
provisions of the new agreement.

      Dealer's performance under any prior agreement may be considered by
Seller in evaluating Dealer's performance under this, or any succeeding,
agreement.

     SECTION 12. RIGHTS AND LIABILITIES UPON TERMINATION

     A. TERMINATION PROCEDURES.

        (1) Upon termination of this Agreement by either Seller or Dealer for
any reason, Dealer shall cease to be an Authorized Infiniti Dealer, and Dealer
shall: (i) immediately discontinue the distribution and sale of Infiniti
Products as an Authorized Infiniti Dealer; and (ii) at its own expense (a) erase
or obliterate all Infiniti Marks and any word or words indicating that Dealer is
an Authorized Infiniti Dealer from the stationery, forms and other papers used
by Dealer or any business associated or affiliated with Dealer; (b) discontinue
all advertising of Dealer as an Authorized Infiniti Dealer; (c) take all steps
necessary to remove any listing in any telephone directory yellow pages
advertisement indicating that Dealer is an Authorized Infiniti Dealer; (d)
discontinue any use of any Infiniti Mark in Dealer's firm or trade name and take
all steps necessary or appropriate in the opinion of Seller to change such firm
or trade name to eliminate any Infiniti Mark therefrom; (e) discontinue or cause
to be discontinued all other use of the Infiniti Marks; (f) refrain from doing
anything, whether or not specified above, that would indicate that Dealer is or
was an Authorized Infiniti Dealer; and (g) refrain from using, either directly
or indirectly, any Infiniti Marks or any other confusingly similar marks, names,
logos or designs in a manner likely to cause confusion or mistake or to deceive
the public. If Dealer fails to comply with any requirements of this Section
12.A.1, Dealer shall reimburse Seller for all costs and expenses, including
reasonable attorney's fees, incurred by Seller in effecting or enforcing
compliance;

        (2) Termination of this Agreement will not release Dealer or Seller
from the obligation to pay any amounts owing the other;

        (3) Subject to Section 12.E, Seller shall process all claims and make
all payments due for all labor provided and all parts and/or other materials
used by Dealer pursuant to Sections 4.B.2 and 4.B.3 prior to the effective date
of termination as provided in the Warranty Manual

        Dealer shall cease, as of the effective date of termination, to be
eligible to receive reimbursement for any work thereafter performed or parts
thereafter supplied under any warranty, campaign inspections or corrections and
any other adjustment previously authorized by Seller.

        (4) Dealer shall, upon Seller's request, deliver to Seller or its
designee copies of Dealer's records with respect  to pre-delivery, warranty,
goodwill, campaign and other service work of Dealer.

     B. REPURCHASES BY SELLER UPON TERMINATION.

        Upon termination, other than pursuant to a sale or transfer, Seller
shall buy from Dealer and Dealer shall sell to Seller, within ninety (90) days
after the effective date of termination:

        (1) All new, unused, undamaged, unlicensed, then current and immediate
previous model year Infiniti Vehicles which were purchased by Dealer from Seller
and are then the unencumbered property of and in the possession of Dealer or
Dealer's flooring and/or financing institution. The price for such vehicles
shall be the invoice price previously paid by Dealer therefor, less Seller's
destination charges, all allowances paid or applicable allowances offered
thereon by Seller, any amount paid by Seller to Dealer for pre-delivery
inspection and service with respect to such vehicles pursuant to Section 4.B,
and any other charge for taxes or special items or service. Seller shall also
repurchase Genuine Accessories which have been installed in such Infiniti
Vehicles which accessories are listed in the current parts and accessories
price list (except those items marked "not eligible") at the prices set forth on
Seller's then current parts and accessories price list

        (2) Subject to Section 12.C, all new, unused, undamaged and resalable
Genuine Parts and Accessories which are still in the original and undamaged
packages, were purchased from Seller, are listed in the current parts and
accessories price list (except those items marked "not eligible"), and are
then the unencumbered property of and in the possession of Dealer. The prices
for such Genuine Parts and Accessories shall be the prices set forth on Seller's
then current parts and accessories price list.

        (3) Subject to Section 12.C, all special tools and equipment owned by
Dealer and which are unencumbered and in the possession of Dealer on the
effective date of termination which were designed especially for servicing
Infiniti Vehicles, are of the type recommended in writing by Seller and
designated as "essential" tools in accordance with Seller's Guides or other
notices pertaining thereto from Seller, are in usable and good condition, except
for reasonable wear and tear, and were purchased by Dealer from Seller within
the three (3) year period preceding the date of termination. Seller's purchase
price for such essential tools shall be calculated at Dealer's purchase price
reduced by straight-line depreciation on the basis of a useful life of
thirty-six (36) months

        Dealer's and Seller's obligations with respect to the signs located at
the Dealership Facilities shall be determined in accordance with the Dealership
Identification Addendum between Seller and Dealer.

                                                                              15

<PAGE>

     C. DEALER'S RESPONSIBILITIES WITH RESPECT TO REPURCHASE.

        Seller's obligation to repurchase Genuine Parts and Accessories and
essential tools from Dealer is conditioned on Dealer's fulfilling its
responsibilities under this Section 12.C as follows:

        (1) Immediately following the effective date of termination of this
Agreement, Dealer shall furnish to Seller a list of vehicle identification
numbers and such other information and documents as Seller may require
pertaining to the Infiniti Vehicles subject to the repurchase obligations of
Section 12.B.1. Dealer shall deliver all such vehicles in accordance with
Seller's instructions.

        (2) Within thirty (30) days after the effective date of termination of
this Agreement, Dealer shall deliver or mail to Seller a detailed inventory of
all of the items referred to in Sections 12.B.2 and 12.B.3. Within thirty (30)
days of its receipt of such inventory, Seller shall provide Dealer with
instructions as to the procedures to be followed in returning such items to
Seller. Dealer shall, at its expense, tag, pack and deliver all such items to
Seller at Seller's designated parts distribution center or such other location
as designated by Seller in accordance with such instructions.

        Should Dealer fail to comply with the responsibilities listed above,
Seller shall have no obligation to repurchase any such items from Dealer;
provided however, that Seller shall have the right, but no obligation, to enter
into the Dealership Facilities for the purpose of compiling an inventory,
tagging, packing and shipping such items to Seller's designated parts
distribution center. If Seller undertakes any such responsibilities of Dealer,
the repurchase prices of such items shall be fifteen percent (15%) less than the
repurchase prices otherwise applicable under Section 12.B.

     D. TITLE TO REPURCHASED PROPERTY.

        With respect to any items of property repurchased by Seller pursuant to
this Section 12, Dealer shall take such action and shall execute and deliver
such instruments as may be necessary: (i) to convey good and marketable title to
all such items of property; (ii) to comply with the requirements of any
applicable law relating to bulk sales and transfers; and (iii) to satisfy and
discharge any liens or encumbrances on such items of property prior to delivery
thereof to Seller.

     E. PAYMENT.

        Seller shall make all payments to Dealer pursuant to this Section 12
within ninety (90) days after Seller's receipt of all items to be repurchased by
it and provided Dealer has fulfilled all of its obligations under this Section
12; provided, however, that Seller shall be entitled to offset against such
payments any and all indebtedness or other obligations of Dealer to Seller.
Seller may make any payment for any property repurchased pursuant to this
Section 12 directly to anyone having a security or ownership interest therein.

     F. CANCELLATION OF DELIVERIES.

        Upon termination of this Agreement Seller shall have the right to cancel
all shipments of Infiniti Products scheduled for delivery to Dealer. After the
effective date of termination, if Seller shall voluntarily ship any Infiniti
Products to Dealer, or otherwise transacts business with Dealer, all such
transactions will be governed by the same terms provided in this Agreement,
insofar as those terms would have been applicable had the Agreement not been
terminated. Nevertheless, neither the shipping of such Infiniti Products nor
any other acts by Seller shall be construed as a waiver of the termination or as
a renewal or extension of this Agreement.

     SECTION 13. ESTABLISHMENT OF SUCCESSOR DEALER

     A. BECAUSE OF DEATH OF PRINCIPAL OWNER.

        If Seller shall terminate this Agreement pursuant to Section 11.C
because of the death of a Principal Owner, the following provisions shall apply:

        (1) Subject to the other provisions of this Section 13, Seller shall
offer a two (2) year Term Sales and Service Agreement to a successor dealership
("Successor Dealership") comprised of the person nominated by such deceased
Principal Owner as his or her successor, together with the other Principal
Owner(s) and Other Owner(s), provided that:

            (a) The nomination was submitted to Seller on a Successor Addendum,
was consented to by the remaining Principal Owner(s) and Other Owner(s), and was
approved by Seller prior to the death of such Principal Owner;

            (b) Either (i) there has been no change in the Executive Manager of
Seller; or (ii) Seller has approved a candidate for Executive Manager having the
required qualifications, expertise, integrity, experience and ability to
successfully operate the dealership and perform Dealer's obligations under this
Agreement; and

            (c) The Successor Dealership has capital and facilities
substantially in accordance with Seller's Guides therefor at the time the Term
Sales and Service Agreement is offered.

     (2) If the deceased Principal Owner has not nominated a successor in
accordance with Section 13.A.1(a) above, but all of the beneficial interest of
the deceased Principal Owner has passed by will or the laws of intestate
succession directly to the deceased Principal Owner's spouse and/or children or
to one (1) or more other Principal Owners who each held not less than a
twenty-five percent (25%) beneficial ownership interest in the dealership prior
to the death of the deceased Principal Owner (collectively "Proposed New
Owners"), subject to the other provisions of this Section 13, Seller shall offer
a two (2) year Term Sales and Service Agreement to a Successor Dealership
composed of the Proposed New Owners, together with the other Principal Owners
and Other Owners, provided that:

        (a) Either (i) there has been no change in the Executive Manager of
Dealer; or (ii) Seller has approved a candidate for Executive Manager having the
required qualifications, expertise, integrity, experience and ability to
successfully operate the dealership and perform Dealer's obligations under this
Agreement; and

        (b) The Successor Dealership has capital and facilities substantially in
accordance with Seller's Guides therefor at the time the Term Sales and Service
Agreement is offered.

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<PAGE>

     B. CONSIDERATION OF SUCCESSOR ADDENDUM.

        To be named in the Successor Addendum, proposed Principal Owner or
Executive Manager must (i) be employed by Dealer or a comparable automotive
dealership as his principal place of employment; (ii) be already qualified as a
Principal Owner or Executive Manager, as the case may be; and (iii) otherwise be
acceptable to Seller as provided below.

        Upon receipt of a request from Dealer that one or more individuals be
named in a Successor Addendum, Seller shall request those named to submit an
application and to provide all personal and financial information that Seller
may reasonably and customarily require in connection with the review of such
applications. Seller, upon the submission of all requested information, will
determine whether to consent to a Successor Addendum naming such individuals by
applying its criteria for considering the qualifications of Principal Owners or
Executive Managers, as the case may be.

     C. TERMINATION OF SUCCESSOR ADDENDUM.

        Dealer may, at any time, withdraw a nomination of a Successor even if
Seller previously has qualified the candidate, or cancel an executed Successor
Addendum by giving notice to Seller of such withdrawal at any time prior to the
death or incapacity of any Principal Owner named in this Agreement. Seller may
cancel an executed Successor Addendum only if the proposed Principal Owner or
Executive Manager no longer complies with the requirements of this Section 13.

     D. EVALUATION OF SUCCESSOR DEALERSHIP.

        During the term of the Term Sales and Service Agreement, Seller will
evaluate the performance of the Successor Dealership and periodically review
with the new Dealer this evaluation. If the Successor Dealership's performance
is deemed to be satisfactory to Seller during the term of the Term Sales and
Service Agreement, Seller will offer a new Sales and Service Agreement to such
Successor Dealership in accordance with Article Twelfth of the Term Sales and
Service Agreement.

     E. TERMINATION OF MARKET REPRESENTATION.

        Notwithstanding anything stated or implied to the contrary in this
Section 13, Seller shall not be obligated to offer a Term Sales and Service
Agreement to any Successor Dealership if Seller notified Dealer prior to the
event causing the termination of this Agreement that Seller's market
representation plans do not provide for continuation of representation in
Dealer's Primary Market Area.

     F. TERMINATION OF OFFER.

        If the person or persons comprising a proposed Successor Dealership to
which any offer of a Term Sales and Service Agreement for Infiniti Products
shall have been made pursuant to this Section 13 do not accept same within
thirty (30) days after notification to them of such offer, such offer shall
automatically expire.

     SECTION 14. SALE OF ASSETS OR OWNERSHIP INTERESTS IN DEALER

     A. SALE OR TRANSFER.

        Article Third of this Agreement provides that neither this Agreement nor
any right or interest herein may be assigned without the prior written consent
of Seller. However, during the term of this Agreement, Dealer may negotiate for
the sale of the assets of Dealer, or the owners of Dealer may negotiate the sale
of their ownership interests in Dealer, upon such terms as may be agreed upon by
them and the prospective purchaser. With respect to any sale or transfer which
requires Seller's prior written consent under Article Third of this Agreement,
Dealer shall notify Seller prior to any closing of the transaction called for by
the purchase and sale agreement, and the prospective purchaser shall apply to
Seller for a Sales and Service Agreement.

     B. SELLER'S EVALUATION.

        Seller is responsible for establishing and maintaining an effective body
of Authorized Infiniti Dealers to promote the sale and servicing of Infiniti
Products. Accordingly, Seller has the right and obligation to evaluate each
prospective dealer, its owner(s) and executive manager, the dealership location
and the dealership facilities to ensure that each of the foregoing is adequate
to enable Dealer to meet its responsibilities hereunder. Seller will evaluate
each prospective purchaser's qualifications and proposal for the conduct of the
Dealership Operations by applying the Standards set forth or referred to in this
Agreement. In determining whether it shall consent to such a sale or transfer,
Seller will take into account factors such as the personal, business and
financial qualifications, expertise, reputation, integrity, experience and
ability of the proposed Principal Owner(s) and Executive Manager as referred to
in Articles Third and Fourth of this Agreement, the capitalization and financial
structure of the prospective dealer, the prospective purchaser's proposal for
conducting the Dealership Operations, the prospective purchaser's customer
satisfaction history and Seller's interest in promoting and preserving
competition.

        In evaluating the prospective purchaser's application for a Sales and
Service Agreement, Seller may, without liability to Dealer, Dealer's Owners or
the prospective purchaser, consult with the prospective purchaser regarding any
matter relating to the proposed dealership.

        Seller shall notify Dealer of Seller's consent or refusal to consent to
Dealer's proposed sale or transfer within sixty (60) days after Seller has
received from Dealer (i) Dealer's written request for Seller's approval; and
(ii) all applications and information customarily or reasonably requested by
Seller to evaluate such a proposal, including, without limitation information
concerning each proposed owner's and/or the replacement dealer's identity,
character, business affiliations, business experience, financial qualifications
and proposals for conducting the Dealership Operations. Any material change in
such a proposal, including without limitation any change in the financial terms
or in the proposed ownership or management of any proposed replacement dealer,
shall be treated as a new proposal for purposes of this Section 14.B. If Seller
does not consent to Dealer's proposed sale or transfer, Seller will specify in
its notice to Dealer the reasons for its refusal to consent.

                                                                              17
<PAGE>

        (1) If Seller determines that the proposed dealership would not, at the
commencement of its operations, have capital or facilities in accordance with
Seller's Guides therefor and otherwise satisfactory to Seller, or if Seller
reasonably determines that the proposed dealership might not meet Seller's
performance Standards in sales, service or customer satisfaction, Seller may, in
its sole discretion and in lieu of refusing to consent to the proposed sale or
transfer, agree to enter into a Term Sales and Service Agreement with the
prospective purchaser. It Seller has recommended, pursuant to a market study
conducted in accordance with Section 2.D, that Dealer relocate its Dealership
Facilities, Seller may offer to the proposed dealer a Term Sales and Service
Agreement subject to the condition that its Dealership Facilities shall be
relocated within a reasonable time to a location and in facilities acceptable to
Seller and in accordance with the market study recommendations.

        Notwithstanding anything stated or implied to the contrary in this
Section 14, Seller shall At be obligated to enter into a Sales and Service
Agreement with any purchaser of the assets or ownership interests of Dealer if
Seller has notified Dealer prior to its having received notice of the proposed
sale or transfer that Seller's market representation plans do not provide for
continuation of representation in Dealer's Primary Market Area.

     C. EFFECT OF TERMINATION.

        This Agreement shall end on the effective date of termination and,
except as otherwise set forth in Section 12, all rights, obligations, duties and
responsibilities of Dealer and Seller under this Agreement shall cease as of the
effective date of termination. No assignment, transfer or sale of Dealer's right
or interest in this Agreement shall have the effect of granting the assignee,
transferee or buyer any right or interest in this Agreement that is greater than
or in addition to that then held by Dealer. Any such assignment, transfer or
sale shall be subject to the terms of any written notice of deficiency under
Section 11.B or any written notice of termination under Sections 11.A, 11.B,
11.C, 11.D, 11.E or 11.F that was previously received by Dealer, including but
not limited to Dealer's obligation to correct any failure before the expiration
date of any period established in any such notice of deficiency. No such
assignment, transfer or sale shall correct any such deficiency or extend the
effective date of termination specified in any written notice of termination.

     D. SELLER'S RIGHTS OF FIRST REFUSAL OR OPTION TO PURCHASE.

        Whenever Dealer proposes to sell its principal assets or the owners of
Dealer propose to sell a majority ownership interest in Dealer, and in addition
to its rights under Articles Third and Fourth and Section 14.B, Seller shall
have the right and option to purchase the dealership assets or ownership
interests pursuant to this Section 14.D. Seller's rights under this Section 14.D
shall not affect the rights of nominated successor(s), surviving Principal
Owner(s) or a deceased Principal Owner's surviving spouse and/or children under
Section 13 or to Dealer's proposal to transfer the Dealer or assets to such
individual(s) apart from the death of a Principal Owner.

        (1) If Seller chooses to exercise its option, it must do so in its
written refusal to consent to the proposed sale or transfer pursuant to Section
14.B. Dealer agrees not to complete any proposed change or sale prior to the
expiration of the period for exercise of Seller's option and without Seller's
prior written consent. Such exercise shall be null and void if Dealer withdraws
its proposal within thirty (30) days following Dealer's receipt of Seller's
notice exercising its option.

        (2) After being exercised, Seller's option may be assigned to any party,
and Seller hereby agrees to guarantee the full payment of the purchase price by
such assignee. Seller's rights under this Section 14.D shall be binding on and
enforceable against any assignee or successor in interest of Dealer or purchaser
of Dealer's assets. Seller shall have no obligation to exercise its rights
hereunder.

        (3) If Dealer has entered into a bona fide written buy/sell agreement
respecting its Infiniti dealership, Seller's right under this Section 14.D
shall be a right of first refusal, enabling Seller to assume the prospective
purchaser's rights and obligations under such buy/sell agreement. The purchase
price and other terms of sale shall be those set forth in such agreement and any
related documents. Seller may request and Dealer agrees to provide all other
documents relating to Dealer and to the proposed transfer, including, but not
limited to, those reflecting any other agreements or understandings between the
parties to the buy/sell agreement. If Dealer refuses either to provide such
documentation or to state in writing that no such documents exist, it shall be
presumed that the agreement is not bona fide.

        (4) In the absence of a bona fide written buy/sell agreement, Seller
shall have the option, but no obligation, under this Section 14.D to purchase
the principal assets of Dealer utilized in the Dealership Operations, including
real property and leasehold interest, and to terminate this Agreement and all
rights granted Dealer hereunder. If the Dealership Facilities are leased by
Dealer from an affiliated company, the right to purchase the principal assets of
Dealer shall include the right to lease the Dealership Facilities. The purchase
price of Dealer's assets shall be at their fair market value as a going concern
as negotiated by the parties and the other terms of sale shall be those agreed
by Dealer and Seller. If Dealer and Seller are unable to reach a negotiated
settlement in a reasonable time, the price and other terms of sale shall be
established by arbitration in accordance with the rules of the American
Arbitration Association. If Seller determines that the buy/sell agreement is not
bona fide, Seller will so notify Dealer. Dealer shall have ten (10) days from
its receipt of such notice within which to withdraw its proposal. Seller's
exercise of its rights hereunder shall be null and void if Dealer withdraws its
proposal within such time period.

        (5) Dealer shall transfer the affected property by Warranty Deed
conveying marketable title free and clear of liens, claims, mortgages,
encumbrances, tenancies and occupancies. The Warranty Deed shall be in proper
form for recording and Dealer shall deliver complete possession of the property
at the time of delivery of the Deed. Dealer shall also furnish to Seller copies
of any easements, licenses, or other documents affecting the property and shall
assign any permits or licenses which are necessary for the conduct of the
Dealership Operations.

18

<PAGE>

     SECTION 15. GENERAL

     A. NOTICES.

        All notices or notifications required or permitted to be given by this
Agreement to either party shall be sufficient only if given in writing and
delivered personally or by mail to Dealer at the address set forth on the
Dealership Facilities Addendum to this Agreement and to Seller at its national
headquarters, or at such other address as the party to be addressed may have
previously designated by written notice to the other party. Unless otherwise
specified in the notice, such notices shall be effective upon receipt.

     B. NO IMPLIED WAIVERS.

        The waiver by either party, or the delay or failure by either party to
claim a breach, of any provision of this Agreement shall not affect the right to
require full performance thereafter, nor shall it constitute a waiver of any
subsequent breach, or affect in any way the effectiveness of such provision.

     C. NO AGENCY.

        Dealer is an independently operated business entity in which Seller has
no ownership interest. This Agreement does not constitute Dealer the agent or
legal representative of Seller or of the manufacturer of Infiniti Products for
any purpose whatsoever. Dealer is not granted any express or implied right or
authority to assume or create any obligation on behalf of or in the name of
Seller or the manufacturer of Infiniti Products or to bind Seller or such
manufacturer in any manner or thing whatsoever.

     D. LIMITATIONS OF SELLER'S LIABILITY.

        This Agreement contemplates that all investments by or in Dealer shall
be made, and Dealer shall purchase and resell Infiniti Products, in conformity
with the provisions hereof, but otherwise in the discretion of Dealer. Except as
herein specified, nothing herein contained shall impose any liability on Seller
in connection with the business of Dealer or otherwise or for any expenditures
made or incurred by Dealer in preparation for performance or in performance of
Dealer's responsibilities under this Agreement.

     E. ENTIRE AGREEMENT.

        This Agreement contains the entire understanding of the parties hereto
with respect to the subject matter contained herein and may be amended only by a
written instrument executed by each of the parties or their respective personal
representatives, successors and/or assigns. This Agreement supersedes any and
all prior agreements with respect to the subject matter hereof, and there are no
restrictions, promises, warranties, covenants or undertakings between the
parties other than those expressly set forth in this Agreement; provided,
however, Seller shall have the right to amend, modify or change this Agreement
in case of changes in laws, government regulations or changes in circumstances
beyond the control of Seller that might affect materially the relationship
between Seller and Dealer as further provided in Section 15.G.

     F. CALIFORNIA LAW.

        This Agreement shall be deemed to have been entered into in the State of
California, and all questions concerning the validity, interpretation or
performance of any of its terms or provisions, or of any rights or obligations
of the parties hereof, shall be governed by and resolved in accordance with the
internal laws of the State of California, including without limitation the
statute of limitations.

     G. CHANGES REQUIRED BY LAW.

        Should Seller determine that any federal or state law or regulation or
any condition referred to in Section 15.E requires a change or changes in any of
the provisions of this Agreement, Seller may offer to Dealer an amendment or an
amended Agreement embodying such change or changes. If Dealer shall fail to
execute such amendment or amended Agreement and return it to Seller within
thirty (30) days after it is offered Dealer, Seller may terminate this
Agreement by giving notice to Dealer, such termination to be effective upon
receipt by Dealer of such notice.

     H. SEVERABILITY.

        If any term or provision of this Agreement, or the application thereof
to any person or circumstance, shall to any extent be found to be invalid, void
or unenforceable, the remaining provisions and any application thereof shall
nevertheless continue in full force and effect without being impaired or
invalidated in any way.

     I. ASSIGNMENT.

        Dealer shall not transfer or assign any right or transfer or delegate
any obligation of Dealer under this Agreement without the prior written approval
of Seller. Any purported transfer, assignment or delegation made without the
prior written approval of Seller shall be null and void.

     J. NO FRANCHISE FEE.

        Dealer represents and warrants that it has paid no fee, nor has it
provided any goods or services in lieu of a fee, as consideration for Seller's
entering into this Agreement and that the sole consideration for Seller's
entering into this Agreement was Dealer's Principal Owners' and Executive
Manager's abilities, integrity, assurances of personal services and expressed
intention to deal fairly and equitably with Seller and the public and any other
promises recited in this Agreement.

     K. CAPTIONS.

        The captions of the sections of this Agreement are for convenience and
reference only and shall in no way be construed to explain, modify, amplify, or
aid in the interpretation, construction or meaning of the provisions of this
Agreement or to be a part of this Agreement.

     L. BENEFIT.

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

                                                                              19

<PAGE>

     M. NOTICE OF FAILURE TO ACT IN "GOOD FAITH".

        In the interest of maintaining a harmonious relationship between Seller
and Dealer, Dealer shall report promptly, in writing, to the President or the
Vice President and General Manager, Infiniti Division of Seller any act or
failure to act on the part of Seller which Dealer deems not to have been, or
that Dealer proposes to use in support of a claim that Seller has not acted, in
good faith as to Dealer. For the purposes of this paragraph, the term "good
faith" shall mean Seller and its representatives acting in a fair, equitable,
and impartial manner toward Dealer so as to guarantee the Dealer freedom from
coercion or intimidation or threats of coercion or intimidation from Seller as
those words are employed in the context of the Automobile Dealers Franchise Act,
15 U. S. C. A.ss.1221, et seq. It is the intention of the parties that the
purpose of the requirement of such notification by Dealer is to afford Seller
sufficient opportunity to consider the claim of Dealer and if, in the sole
determination of Seller, such claim is found to be meritorious, to undertake
such measures which may be necessary to correct the condition complained of to
the end that Seller shall, at all times, act in good faith as to Dealer.

20<PAGE>
                                                                  EXHIBIT 10.2.2

                                 {Jaguar Logo]

                               Automobile Dealer
                               Sales and Service
                                   Agreement
<PAGE>
                                  JAGUAR CARS

                                DEALER AGREEMENT

This Agreement dated as of (Month, Day, Year) is made by and between (Corporate
Name),      a (State) corporation d/b/a/ Jaguar (Location Name) located at
(Address, City State, Zip Code) (hereinafter referred to as the "Dealer") and
JAGUAR CARS, a division of Ford Motor Company with its principal place of
business at 555 MacArthur Boulevard, Mahwah, New Jersy 07430-2327 (hereinafter
referred to as the "Company").

                                    PREAMBLE

The Company is the exclusive authorized distributor in the United States of the
vehicles, parts and accessories manufactured and sold by Jaguar Cars Limited in
the United Kingdom.

The Company and Dealer sell unique motorcars to discriminating buyers, who
expect, and have a right to receive, products designed, engineered and
manufactured to the most exacting standards and retail customer services
unsurpassed in the luxury car industry. The Company and Dealer recognize that
their success depends upon their ability to satisfy those expectations and
commit to use their best efforts to supply products and services commensurate
with such standards. The Company and Dealer acknowledge and agree that
fullfillment of the terms and conditions of this Agreement are essential to the
achievement of these goals.

The Company and Dealer also agree that successful functioning under this
Agreement depends on their mutual cooperation, goodwill and fair dealing. The
broadest objective of this Agreement is to put the business relationship
between the Company and Dealer on a basis where these principles guide both
parties in their common effort to promote the sale of Jaguar Products and to
achieve the highest possible level of customer satisfaction with those products
and the authorized dealers who sell them.

                             APPOINTMENT OF DEALER

1.   The Company hereby appoints the Dealer as a non-exclusive authorized
     dealer in Jaguar Products at the Dealership Facilities. The Dealer hereby
     accepts such appointment and assumes all of the duties, obligations and
     responsibilities of an authorized Jaguar dealer, as specified in this
     Agreement.

2.   This Dealer Agreement and the "Dealer Agreement Standard Provisions" and
     any Exhibits thereto (the "Standard Provisions") (which Standard Provisions
     are expressly made a part of this Dealer Agreement, with the same force and
     effect as if set forth herein in full) contain the entire agreement between
     the parties hereto. Any amendment of this Agreement must be in writing and
     signed by an
<PAGE>
     Executive Officer of the company and a duly authorized officer of Dealer
     named in Paragraph 6 hereof. DEALER HEREBY ACKNOWLEDGES RECEIPT OF SAID
     STANDARD PROVISIONS AND THE EXHIBITS THERETO AND DECLARES THE PERSONS NAMED
     IN PARAGRAPH 6 HEREOF HAVE EXAMINED THE TERMS AND CONDITIONS CONTAINED
     THEREIN AND ARE FULLY FAMILIAR WITH THEM.

3.   Dealer shall not sell, assign or otherwise transfer, or attempt to sell,
     assign or otherwise transfer this Agreement or sell or transfer any right
     or delegate any duty, obligation or responsibility of Dealer hereunder. In
     the event Dealer desire to change ownership or management of Dealer or
     sell, assign or transfer all or substantially all of the assets used in its
     Jaguar Operations, Dealer shall do so only in accordance with the terms and
     conditions set forth in the Standard Provisions.

4.   This Agreement is to be governed by, and construed in accordance with, the
     laws of the state in which Dealer is located. If any provision of this
     Agreement should be held invalid or unenforceable for any reason
     whatsoever or in violation of any law of the United States, the
     District of Columbia, or any state, this Agreement shall be considered
     divisible as to such provision; such provision shall be deemed deleted from
     this Agreement and the remainder of this Agreement shall be valid and
     binding as if such provision had not been included herein.

5.   This Agreement supersedes all prior agreements, whether oral or written,
     between the parties hereto relative to the terms and conditions of Dealer's
     appointment to sell and service Jaguar Products (except any Performance
     Agreement(s) between the Company and Dealer that is/are expressly made a
     part hereof).

6.   This Agreement has been entered into by the Company in reliance upon
     Dealer's representations that:

A.   The following person(s) has/have an ownership interest (whether direct or
     indirect) in Dealer:

                                        PERCENTAGE
     NAME AND HOME ADDRESS              OF INTEREST              TITLE
     ---------------------              -----------              -----
     (Corporate Name or Individual)     ( % )                    (Title)
     (Address)
     (City, State, Zip Code)

B.   The following person is hereby named the Dealer Operator, with full
     managerial authority and responsibility for the operations of Dealer:

                                        PERCENTAGE
     NAME AND HOME ADDRESS              OF INTEREST              TITLE
     ---------------------              -----------              -----
     (Name)                             ( % )                    (Title)

<PAGE>
(Home Address)
(City, State, Zip Code)

     C.  The following person(s) is/are Officers/Directors of Dealer and will
actually and substantially             participate in the management of Dealer:

<Table>
<Caption>
                                      PERCENTAGE
NAME AND HOME ADDRESS                 OF INTEREST                   TITLE
---------------------                ------------                  -------
<S>                                <C>                           <C>

(Name)                                    (%)                      (Title)
(Home Address)
(City, State, Zip Code)

</Table>

       7.      This Dealer Agreement and the appointment made under its
          provisions shall, unless sooner terminated for cause or by mutual
          consent, as provided for in the Standard Provisions, remain in force
          continuously commencing on (Month, Day, Year), provided however, that
          the Dealer agrees to enter into any revised or modified Agreement
          that the Company may hereafter, from time to time, offer to its
          authorized dealers.

       8.      This Agreement shall not be valid unless and until executed by an
          Executive Officer of the Company and by a duly authorized officer of
          Dealer named in paragraph 6 hereof.

          JAGUAR CARS

          By ______________________________________________

       Date: _____________
             Sally J. Eastwood
             Vice President, Franchise Operations
             Jaguar Cars

          DEALER: (Corporate Name) D/B/A JAGUAR (LOCATION NAME)

            By ______________________________________________

       Date: _____________
             (NAME)
             As an individual and an officer of

            (Corporate Name)
             D/b/a Jaguar (Location Name)

<PAGE>

                                 [JAGUAR LOGO]

                                DEALER AGREEMENT
                               STANDARD PROVISIONS

<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                       Page
<S>           <C>                                                      <C>
ARTICLE 1 -   Definitions                                                2
ARTICLE 2 -   Obligations of the Company                                 3
ARTICLE 3 -   Terms and Conditions of Sale
              of Jaguar Vehicles                                         3
ARTICLE 4 -   Dealership Facilities                                      5
ARTICLE 5 -   Dealer Ownership, Management
              and Personnel                                              6
ARTICLE 6 -   General Requirements for Dealer's
              Jaguar Operations                                          8
ARTICLE 7 -   Sale and Promotion of Jaguar Products                      9
ARTICLE 8 -   Customer Service                                           10
ARTICLE 9 -   Purchase and Inventory of Jaguar Parts                     12
ARTICLE 10 -  Financial Requirements, Statements
              and Reports                                                13
ARTICLE 11 -  Trademarks                                                 14
ARTICLE 12 -  Advertising and Merchandising                              15
ARTICLE 13 -  Indemnifications                                           15
ARTICLE 14 -  Termination of the Agreement Prior
              to its Expiration                                          17
ARTICLE 15 -  Right of Succession                                        20
ARTICLE 16 -  Extensions and Renewal of Agreement                        21
ARTICLE 17 -  Rights and Obligations Upon
              Termination of Agreement                                   21
ARTICLE 18 -  Miscellaneous Provisions                                   23
</TABLE>

<PAGE>

                      DEALER AGREEMENT STANDARD PROVISIONS

The following Standard Provisions of the Jaguar Cars Dealer Agreement and the
Exhibits hereto (the "Standard Provisions") are expressly made a part of and are
incorporated by reference into the Dealer Agreement and shall apply to and
govern the transactions, dealings and relations between the Company and Dealer
with the same force and effect as if set forth in full in the Dealer Agreement.
Unless otherwise indicated, the term "Agreement" shall mean the Jaguar Cars
Dealer Agreement, its Standard Provisions and the Exhibits hereto, collectively.

ARTICLE 1 -         DEFINITIONS

     As used in the Agreement, the following terms shall have the following
     meanings:
         COMPANY-APPROVED UPGRADE PROGRAM - an agreement entered into by and
         between the Company and Dealer, usually in the form of a Performance
         Agreement, in accordance with which Dealer makes specified changes in
         its Dealership Facilities, Jaguar Operations, management or personnel.

         DEALERSHIP FACILITIES - the real property and buildings at which, and
         out of which, Dealer operates its Jaguar sales, service and parts
         operations.

         DEALER OPERATOR - the person identified in Paragraph 6B of the Dealer
         Agreement, or his successor.

         EXECUTIVE OFFICER - the President, Senior Vice Presidents and Vice
         Presidents of the Company.

         JAGUAR OPERATIONS - all activities of Dealer relating to the sale,
         repair or servicing of Jaguar Products and the rendering of customer
         services on behalf of owners and prospective owners of such products.

         JAGUAR PARTS - all parts, accessories or equipment for Jaguar Vehicles
         manufactured and/or sold by Jaguar Cars Ltd. or the Company and
         supplied to Dealer by the Company.

         JAGUAR PRODUCTS - any Jaguar Vehicles or Jaguar Parts.

         JAGUAR SIGNS - any display of the word "Jaguar," the Jaguar "Leaping
         Cat," the Jaguar "Cat Head" and/or any other trademark, service mark,
         or trade name now, or at any time hereafter, used or claimed by Jaguar
         Cars Ltd. or the Company.

         JAGUAR VEHICLES - any new vehicle manufactured by Jaguar Cars Ltd. and
         sold and distributed by the Company.

         PERFORMANCE AGREEMENT - a written agreement entered into by and between
         the Company and Dealer, in accordance with which Dealer agrees to
         construct, renovate and/or relocate its Dealership Facilities, to
         change or augment its management and/or personnel or to otherwise
         upgrade its Jaguar Operations.

                                                                               2

<PAGE>

ARTICLE 2 -         OBLIGATIONS OF THE COMPANY

2.1    The Company agrees to sell and deliver Jaguar Products to Dealer in
       accordance with the terms and conditions of this Agreement.
2.2    The Company will use its best efforts to assist Dealer in the conduct of
       Dealer's Jaguar Operations by providing a comprehensive range of support
       services, including, but not limited to, the following:
       (a)  Conducting training courses for Dealer's personnel (it being,
            however, Dealer's obligation to insure that its personnel attend
            such courses);
       (b)  Preparing and disseminating sales, service, parts and warranty
            literature relating to Jaguar Products, policies and procedures;
       (c)  Providing national advertising and promotional campaigns for Jaguar
            Products;
       (d)  Developing and conveying suggestions and evaluations to assist
            Dealer in the conduct of its Jaguar Operations.

ARTICLE 3 -         TERMS AND CONDITIONS OF SALE OF JAGUAR VEHICLES

3.1    The Company and Dealer recognize and acknowledge that there have been and
       may be times when demand for Jaguar Vehicles in the United States exceeds
       available supply. As a result, the Company has developed and implemented
       a system to allocate Jaguar Vehicles to its dealers in a fair, reasonable
       and equitable manner. Attached to this Agreement as Exhibit A and
       expressly made a part hereof is a description for the Jaguar Cars New
       Vehicle Retail allocation System (hereinafter referred to as the
       "Allocation System"). Dealer hereby acknowledges that it has distributed
       said Exhibit to the persons listed in Paragraph 6 of the Dealer Agreement
       and to its sales and service department managers and that those
       individuals have examined and familiarized themselves with the terms of
       the Allocation System.
3.2    The Company commits to allocate and sell Jaguar Vehicles to Dealer in
       conformity with the Allocation System. Although the company does not
       solicit or accept sold vehicle orders from its dealers, Dealer's
       preferences with respect to colors and trims will be considered by its
       District Sales Manager when distributing allocated vehicles among dealers
       in his/her district, consistent with an equitable distribution of such
       colors and trims among all dealers in such district.
3.3    During the term of this Agreement, Dealer shall continuously maintain,
       with a financing institution reasonably acceptable to the Company, floor
       plan financing exclusively for the purchase of Jaguar Vehicles in an
       amount equal to or greater than the wholesale cost of a two months supply
       of new Jaguar Vehicles, based on Dealer's average monthly allocation of
       such vehicles. The Company will, upon request from Dealer, execute a
       vehicle repurchase agreement with Dealer's financing institution, if such
       an agreement is required in order for Dealer to secure floor plan
       financing in accordance with this paragraph.
3.4    Payment to the company for Jaguar Vehicles is due and shall be made by
       Dealer upon presentation of the Company's cash draft for said Jaguar
       Vehicles to Dealer's financial institution or by such other method as the
       Company may from time to time adopt. Title and ownership to Jaguar
       Vehicles shall remain with the Company until payment in full for such
       vehicles has actually been received by the Company.
3.5    Fluctuations in the prices of Jaguar Vehicles are to be anticipated
       during the term of this Agreement. The Company will try to give Dealer
       reasonable advance notice of any price increases, but this may not always
       be possible. In the event the price of any Jaguar Vehicle

                                                                               3
<PAGE>

       which has already been allocated to Dealer is increased before the
       vehicle is delivered to Dealer, Dealer shall pay the price in effect
       before the increase, except where such price increase goes into effect
       for a new model year vehicle, in which case Dealer will pay the increased
       price. If the manufacturer's suggested retail price on any Jaguar Vehicle
       in Dealer's stock is reduced, the Company will refund the difference, if
       any, between the reduced dealer price and the price actually paid by
       Dealer, net of any applicable rebates or allowances.
3.6    Dealer is responsible for and shall pay any and all sales taxes, use
       taxes and any other governmental or municipal charges imposed or levied
       or based upon the sale of Jaguar Vehicles by the Company to Dealer, or by
       Dealer to its customers.
3.7    The Company will keep Dealer informed of the warranty or warranties
       applicable to Jaguar Vehicles or Select Edition(R) Jaguar Vehicles.
       Dealer will insure that such warranty or warranties, in the form prepared
       and disseminated by the Company, are included in each agreement for the
       sale of such Jaguar vehicles by Dealer, to the extent applicable, and
       will furnish a copy of such warranty or warranties to the customer upon
       delivery of any such Jaguar vehicle. OTHER THAN AS PROVIDED FOR IN SUCH
       WARRANTY OR WARRANTIES (AND OTHER THAN WITH RESPECT TO IMPLIED WARRANTIES
       TO DEALER, IF ANY, PROVIDED FOR BY LAW), NEITHER THE MANUFACTURER NOR THE
       COMPANY GIVE ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED
       TO ANY IMPLIED WARRANTY OR MERCHANTABILITY OR FITNESS, ON ANY SUCH JAGUAR
       VEHICLE.
3.8    If any Jaguar Vehicle has been delivered to Dealer without a label, or
       with an incorrect or incomplete label affixed thereto pursuant to the
       Federal Automobile Information Disclosure Act, 15 U.S.C. Section 1232,
       dealer will notify the Company of such finding. Thereafter, the Company
       shall give Dealer instructions with respect to affixing, correcting or
       completing such label and Dealer warrants that it will comply with such
       instructions.

ARTICLE 4 -        DEALERSHIP FACILITIES

4.1    Dealer acknowledges and agrees that attractive, well-maintained and
       conveniently located Dealership Facilities, consistent in design and
       decor with, and appropriate for the presentation of, luxury automobiles
       such as the Company's Jaguar Vehicles, are essential to the fulfillment
       of Dealer's obligations under this Agreement.
4.2    If Dealer has completed a Company-approved Upgrade Program, Dealer agrees
       to maintain and enhance its Dealership Facilities in accordance with the
       Company's reasonable suggestions and increases in the volume of sales and
       service business conducted by Dealer.
4.3    If Dealer has not completed a Company-approved Upgrade Program, Dealer
       commits to consult with the Company to determine whether or not Dealer
       should undertake such a program. Unless the Company notifies Dealer in
       writing that it does not recommend that Dealer undertake such a program,
       the Company and Dealer will negotiate and enter into a suitable
       Performance Agreement in accordance with which Dealer will construct or
       renovate Dealership Facilities, at a location and in accordance with
       plans produced by Dealer and approved by the Company. In negotiating such
       a Performance Agreement, the parties will give due consideration to the
       economic consequences of the upgrade program on Dealer. It being,
       however, understood that the short-term costs of such a program must be
       weighed against, and be viewed in light of, its long-term benefits. Any
       Performance Agreement entered into by Dealer and the Company shall be an
       exhibit to these Standard Provisions and shall govern the relationship
       between the parties as if set forth herein in full.

                                                                               4
<PAGE>

       Dealer agrees that its upgraded Dealership Facilities must meet the
       Company's Facilities/Personnel Guide for a dealership of the size
       contemplated and must be designed and decorated in a style consistent
       with that of other dealership facilities constructed or renovated in
       accordance with a Company-approved Upgrade Program. A copy of the
       Performance Agreement between the Company and Dealer (or a sample
       Performance Agreement between the Company and an existing dealer) is
       attached hereto as Exhibit B. A copy of the Company's
       Facilities/Personnel Guide is attached as Exhibit C and expressly made a
       part hereof.
4.4    Dealer agrees that it will not relocate all or any part of its Jaguar
       Operations unless and until it has first presented to the Company such
       information as the Company deems necessary to evaluate the proposed new
       site for such Jaguar Operations and has secured from the Company its
       prior written consent to such relocation. Dealer understands that in
       evaluating any proposed site, the Company will consider various factors,
       including, but not limited to, the adequacy of the site for a dealership
       of the size contemplated, the convenience and accessibility of the site
       to existing and potential Jaguar owners and the type and quality of
       residential buildings and commercial enterprises located in the general
       area adjacent to and surrounding the site. The Company will conduct its
       evaluation of any such proposed site as expeditiously as possible and
       will use its best efforts to complete such evaluation within thirty (30)
       days after it has received all of the information it requires to make
       such evaluation. The Company will approve the proposed relocation only
       if, based upon all the relevant factors, the Company in the exercise of
       its good faith business judgment considers the proposed relocation to be
       in the best interest of Dealer and of Jaguar owners in the area in which
       Dealer is located.
4.5    Subject to applicable ordinances, Dealer agrees to erect or install such
       Jaguar Signs as the Company shall reasonably require in accordance with a
       sign survey of the Dealership Facilities to be conducted by or on behalf
       of the Company.

ARTICLE 5 -        DEALER OWNERSHIP, MANAGEMENT AND PERSONNEL

5.1    Dealer has provided the Company in the Dealer Agreement with a list of
       the owners, officers and Dealer Operator of Dealer and Dealer recognizes
       that the Company has entered into this Agreement on the basis of and
       relies upon the representations concerning the ownership and management
       of Dealer contained in the Dealer Agreement. Dealer will in no event make
       or agree to any changes in such ownership or management without first
       consulting with the Company and obtaining the express prior written
       consent of an Executive Officer of the Company.
5.2    Dealer expressly recognizes and acknowledges that the identity,
       reputation, financial resources, personal and business qualifications and
       experience and marketing philosophy of the owners and management of the
       Company's authorized dealers is of vital significance to the Company in
       its efforts to achieve and maintain a level of retail representation for
       Jaguar Products unsurpassed in the luxury car industry. Consequently, in
       the event Dealer proposes to change its ownership or management or
       desires to sell all or substantially all of the assets used in its Jaguar
       Operations, Dealer will advise the Company in writing not less than sixty
       (60) days prior to the effective date of any such proposed change in its
       ownership or management and prior to entering into any binding
       contractual agreement to sell all or substantially all of such assets.
       The Company will not unreasonably withhold its approval of any such
       proposal made to it by Dealer. In evaluating Dealer's proposal, the
       Company will consider all of the relevant factors concerning the proposed
       new owners or

                                                                               5
<PAGE>

       management, including but not limited to those factors set forth in this
       paragraph above, as well as the Company's interest in promoting
       competition between and among its authorized dealers and those of
       competing manufacturers. The Company will also consider whether and to
       what extent any proposed new owners or managers have prior experience in
       the management of comparable luxury car dealerships. The Company will
       not, however, approve any proposal which would result in the ownership by
       the same person(s) or corporation(s) of two (2) or more authorized Jaguar
       dealerships. Dealer will be notified in writing by the Company of its
       decision with respect to Dealer's proposal within sixty (60) days after
       the Company has received all of the information requested by the Company
       concerning the proposal.
5.3    Dealer has designated in the Agreement a Dealer Operator with full
       managerial authority and responsibility for the operations of Dealer. The
       Dealer Operator shall devote substantial time and attention to the
       management of Dealer; shall have full authority to make decisions and act
       on behalf of Dealer; and shall have, or be entitled to acquire, not less
       than a 10% interest in Dealer. Dealer agrees to inform Company in writing
       prior to replacing or agreeing to replace the Dealer Operator. Dealer
       shall supply the Company with any and all information the Company deems
       necessary to evaluate the qualifications of any proposed successor to the
       Dealer Operator, including but not limited to his/her prior luxury car
       business experience and may condition its acceptance of the successor
       upon satisfactory completion of a trial period. It is specifically
       understood and agreed that no replacement of the Dealer Operator shall be
       made or be effective without the prior written approval of a Zone Manager
       or Executive Officer of the Company, except with respect to any
       Designated Successor approved by the Company in accordance with Paragraph
       15.2(a) (iii) hereof.
5.4    Dealer acknowledges and agrees that maintaining a stable, experienced
       sales, service and parts staff is essential to the proper representation
       of Jaguar Products. Dealer will employ in all managerial and technical
       positions the number of individuals required by the Jaguar
       Facilities/Personnel Guide. Each such individual should be experienced in
       the sales and/or servicing of luxury products or must be expeditiously
       trained in the sale and/or servicing of such products. Dealer expressly
       agrees that all personnel engaged in Dealer's Jaguar Operations must
       attend applicable training courses offered by the Company and must wear
       appropriate attire when engaged in such operations.

ARTICLE 6 -     GENERAL REQUIREMENTS FOR DEALER'S JAGUAR
                OPERATIONS

6.1    Dealer shall at all times conduct its business in an ethical, fair and
       courteous manner and shall avoid any conduct which might be harmful to
       the reputation and marketing of Jaguar Products or which is in any way
       inconsistent with the public interest.
6.2    Throughout the term of this Agreement, Dealer shall keep its Dealership
       Facilities open for business during, and for not less than, the customary
       business hours of the trade in Dealer's area.
6.3    Dealer will, at all times, maintain current and valid all licenses
       required of Dealer for operation of Dealer or occupancy of the Dealership
       Facilities and will adhere to all laws, rules, regulations and codes
       relating to the conduct of its business which are applicable to Dealer.
       In addition, Dealer will comply with all applicable provisions of the
       National Traffic and Motor Vehicle Safety Act of 1966, the Federal Clean
       Air Act, the Magnusson-Moss Warranty Act and any applicable state
       repair/replace legislation, all as amended,

                                                                               6
<PAGE>

       including regulations issued hereafter, together with any other federal,
       state and local vehicle emission, safety and warranty legislation.
6.4    Without in any way limiting the generality of the foregoing paragraph,
       Dealer shall not modify a Jaguar Product in any manner which causes, or
       may cause, such Product to fail to comply with any motor vehicle safety
       standard or which creates, or may create, an unreasonable risk to motor
       vehicle safety.
6.5    Dealer shall use its best efforts to comply with all reasonable
       directives and suggestions of the Company in the marketing and sale of
       Jaguar Vehicles, the sale of Jaguar Parts and the performance of customer
       services, including warranty servicing of Jaguar Vehicles.
6.6    Dealer agrees to purchase and use appropriate data processing and
       computer systems to maintain its accounting records, perpetual parts
       inventory and similar records on a current basis.
6.7    Dealer commits to review with care all customer satisfaction data
       provided by the company to Dealer and to take such steps as are
       reasonably necessary and appropriate to correct any deficiencies in its
       sales, service or parts operations or customer services revealed by such
       data.
6.8    The Company, through its designated employees and other designees, shall
       have the right, at all reasonable times during regular business hours and
       on reasonable notice to inspect the Dealership Facilities and to observe
       the nature and quality of Dealer's customer services, and Dealer shall
       cooperate fully and take all action necessary to facilitate such
       inspections and observations.

ARTICLE 7 -             SALE AND PROMOTION OF JAGUAR PRODUCTS

7.1    Dealer will use its best efforts to actively promote the sale of Jaguar
       Products through systematic contacts with existing and potential owners
       of Jaguar Vehicles and through such other reasonable means as the Company
       may from time to time suggest.
7.2    Dealer acknowledges and agrees that the Company has appointed Dealer as
       an authorized Dealer in Jaguar Products at the Dealership Facilities for
       the primary purpose of selling and servicing Jaguar Products in the
       market in which Dealer is located (which, in the absence of a more
       specific definition, shall for the purposes of this Agreement mean the
       geographic area in which Dealer is located and its immediate environs).
       While nothing in this Agreement limits Dealer as to the geographic area
       into which, or the persons to whom, Dealer may sell Jaguar Products,
       Dealer acknowledges that it has assumed the obligation of selling and
       servicing Jaguar Products in its market.
7.3    Within the limitations, if any, of the supply of Jaguar Vehicles made
       available to Dealer by the Company, Dealer shall use its best efforts to
       achieve the best sales performance possible in the market it has been
       appointed to serve. Such sales performance shall be evaluated by the
       Company from time to time in accordance with such fair and reasonable
       sales objectives and such consistent market criteria as may be
       established by the Company, including but not limited to a comparison for
       a given period of the number of Jaguar Vehicles sold by the Dealer in its
       market (or in the case of certain multi-dealer markets, in that portion
       of its market which the Company determines is most conveniently served by
       Dealer) expressed (i) as a percentage of all Jaguar Vehicles sold in the
       Dealer's market (or relevant portion thereof) during such period and (ii)
       as a percentage of certain selected vehicles of comparable quality, price
       and specification sold in the Dealer's market (or relevant portion
       thereof) during such period, all as compared with comparable percentages
       achieved by other similarly situated Jaguar dealers. The Company commits
       to make

                                                                               7
<PAGE>

       available to Dealer from time to time any data compiled by the Company of
       the type described in this paragraph.
7.4    Subject to availability, Dealer shall have at the Dealership Facilities
       for display purposes and for use as demonstrators a representative stock
       of current model year Jaguar Vehicles, all of which shall be maintained
       in first class operating and cosmetic condition.
7.5    In the event any Jaguar Product sold by the Company to Dealer is damaged
       prior to delivery to Dealer, or is determined to be defective prior to
       sale by Dealer, Dealer shall, upon notification to and in accordance with
       instructions from the Company, repair such damage or defect or take such
       other action as the Company may direct. The Company will reimburse Dealer
       for any such work performed on a Jaguar Product at the Company's request
       in accordance with applicable policies and procedures in effect at the
       time such repairs are made.
7.6    Dealer recognizes and agrees that the Manufacturer shall have the right,
       at any time and from time to time, to make changes in the design or
       specifications of Jaguar Products. In the event of changes in the design
       or specifications of Jaguar Products, the company shall have no
       obligation to Dealer to make similar changes in Jaguar Products
       previously delivered to Dealer or to otherwise compensate Dealer for such
       products.
7.7    Dealer shall comply with all local, state and federal laws and
       regulations applicable to Dealer, including, but not limited to, those
       respecting licensing, consumer protection, and registration and model
       year requirements, when selling Jaguar Vehicles.

ARTICLE 8 -        CUSTOMER SERVICE

8.1    The Company and Dealer understand and agree that their mutual success
       depends upon their ability to achieve unsurpassed levels of customer
       satisfaction with Jaguar Products and the authorized dealers who
       represent them. The Company commits to use its best efforts to assist
       Dealer in achieving this objective and Dealer commits to provide the
       highest level of expert customer service to all owners of Jaguar
       Vehicles, regardless of whether or not they have purchased such vehicles
       from Dealer.
8.2    Dealer expressly agrees that the operation of a fully-equipped,
       well-managed Service Department, staffed with courteous personnel fully
       trained in the servicing and repair of Jaguar Products is essential to
       the fulfillment of Dealer's obligations under this agreement.
8.3    Dealer's Service Department must comply in all respects with the
       requirements of Jaguar's Facilities/Personnel Guide (Exhibit B),
       including but not limited to the requirements relating to the size and
       layout of the facilities. Dealer and Company may, under certain
       circumstances, agree to specific variations from the requirements of said
       Guide, but it is agreed that the parties will strive to satisfy the
       provisions of the Guide. Dealer expressly acknowledges and agrees that
       those sections of the Service Department which are used for customer
       reception and waiting areas must be designed and decorated in a style
       consistent with the promotion and a presentation of luxury automobiles
       like Jaguar Vehicles. Dealer also agrees that the entire Service
       Department will be maintained in a clean, well-organized and attractive
       condition.
8.4    Dealer will purchase and maintain in good working order (i) such special
       Jaguar tools and shop equipment as the Company shall from time to time
       specify in a Required Tools and Equipment List and (ii) such general
       tools and shop equipment as are necessary and appropriate for the
       servicing and repair of Jaguar Products.

                                                                               8
<PAGE>

8.5    Dealer recognizes and accepts its obligation to use its best efforts to
       effectively service and condition each new Jaguar Vehicle before delivery
       in accordance with any pre-delivery service and conditioning schedules
       furnished from time to time by the Company to Dealer.
8.6    Dealer shall act as the Company's representative for purposes of
       performing all warranty obligations of the Company in accordance with the
       terms and conditions of the warranties issued from time to time by the
       Company. Dealer will provide prompt, courteous and expert warranty
       service and repair of all Jaguar Products covered by the Company's
       warranties, regardless of whether such Jaguar Products have been sold by
       Dealer. In doing so Dealer shall comply with all local, state and federal
       laws and regulations respecting such warranties and, as the Company's
       representative, shall be responsible for the quality of the warranty
       service it performs.
8.7    The procedures for the processing and disposition of warranty claims and
       for the return and disposition of Jaguar Parts claimed to be defective
       shall be as established from time to time by the Company. Dealer will be
       promptly compensated for warranty work actually performed by Dealer, for
       which Dealer submits full and complete warranty claims, and for which
       Dealer has appropriate supporting documentation, in accordance with the
       Company's warranty policies and procedures.
8.8    Dealer shall prepare and maintain such records as the Company may
       reasonably require to support the warranty claims submitted by Dealer to
       the Company. Dealer understands and agrees that the Company will from
       time to time perform spot audits of such warranty records and supporting
       documentation and Dealer agrees to comply with any suggestions made to it
       to improve its recordkeeping as a result of such spot audits. Dealer also
       understands and agrees that the Company reserves the right to conduct
       full audits of Dealer's warranty claims and supporting documentation as
       the Company may from time to time deem necessary and appropriate and that
       the Company shall chargeback any credits previously posted to Dealer's
       account for any incomplete or inaccurate warranty claims or for any
       warranty claims for which Dealer lacks appropriate supporting
       documentation.
8.9    Dealer will investigate any complaints relative to Jaguar Products made
       by customers or referred to Dealer by the Company and shall be entitled
       to compensation promptly upon completion of any work performed in
       accordance with the terms of the Company's warranties or authorized by a
       Company representative, provided that appropriate claims are submitted by
       the Dealer in accordance with Company's policies and procedures.

ARTICLE 9 -       PURCHASE AND INVENTORY OF JAGUAR PARTS

9.1    The Company shall sell Jaguar Parts to Dealers at such prices and upon
       such terms and conditions as may be established from time to time by the
       Company.
9.2    Dealer is responsible for and shall pay any and all sales taxes, use
       taxes and other governmental or municipal charges imposed or levied or
       based upon the sale of Jaguar parts to Dealer, or by Dealer to its
       customers.
9.3    The Company will maintain an open account for Dealer in accordance with
       such terms and conditions as the Company may from time to time establish.
       The Company will credit such account with certain amounts due and owing
       to Dealer from the Company, including but not limited to amounts due for
       warranty claims submitted by Dealer to, and approved by, the Company.
       Provided that Dealer's account with the Company remains current, the
       Company will debit such account for certain purchases made by Dealer from
       the Company, including but not limited to the total cost of all parts
       orders filled by the Company for Dealer. The Company will issue a
       statement at the end of each month summarizing the

                                                                               9
<PAGE>

       activity in Dealer's account for that month and indicating whether
       Dealer's account is in a debit or credit position as of the last day of
       such month. Dealer will be obligated to pay to the Company within ten
       (10) days of the date of such statement the total amount of any debit
       balance, without deduction or setoff of any kind.
9.4    If Dealer fails to keep its account with the Company current, or if the
       Company determines in its sole discretion that Dealer's financial
       condition is or may be impaired, Dealer's parts purchases will be filled
       on a C.O.D. basis only. Collection charges, if any, on C.O.D. orders are
       to be paid by Dealer.
9.5    Dealer shall acquire and at all times maintain a sufficient inventory of
       Jaguar Parts to (a) meet all of its current and anticipated warranty and
       service obligations on a prompt and regular basis, (b) meet or exceed any
       reasonable stocking requirements established from time to time by the
       Company and (c) develop and maintain a wholesale parts business. Dealer
       expressly understands and agrees that failure to maintain an adequate and
       representative stock of Jaguar Parts is inconsistent with its obligations
       under this Agreement.
9.6    Dealer will maintain its entire Parts Department, including all parts
       bins and aisles, in a clean, well-organized and attractive condition.
9.7    Dealer shall not represent as new, genuine Jaguar Parts or as parts
       approved or authorized by the Company or the Manufacturer, any parts
       which are not in fact new, genuine Jaguar Parts or parts expressly
       approved or authorized by the Company or the Manufacturer. Dealer will
       not, without the specific consent of the owner, install on any Jaguar
       Vehicle any non-approved parts or accessories which may (a) affect the
       owner's rights under any warranty applicable to the Vehicle or (b) create
       any unreasonable risk to motor vehicle safety.

ARTICLE 10 -      FINANCIAL REQUIREMENTS, STATEMENTS AND REPORTS

10.1   Dealer recognizes that in order to conduct its business on a profitable
       basis and to fulfill its obligations under this Agreement, Dealer must at
       all times maintain and have available for its Jaguar Operations
       sufficient cash, net working capital and net worth to meet such
       reasonable financial standards and requirements as the Company may from
       time to time promulgate. If the Company in the exercise of its good faith
       business judgment determines at any time that the amount of Dealer's
       cash, net working capital or net worth fails to meet such standards and
       requirements, Dealer will take whatever steps are necessary to meet the
       Company's applicable requirements within a reasonable time after
       notification by the Company to Dealer of any such deficiency.
10.2   Dealer shall furnish to the Company, on or before the tenth (10th) day of
       each calendar month, on such forms as the Company may require, a
       financial statement completely and accurately reflecting the results of
       Dealer's Jaguar Operations for the preceding month and year-to-date.
       Dealer shall also from time to time furnish to the Company such other
       reports and financial statements, including but not limited to reviewed
       financial statements, as the Company may reasonably require. Dealer also
       agrees that the Company may from time to time arrange at its own expense
       to audit Dealer's financial records.
10.3   The Company will not furnish to any third party any data, including but
       not limited to financial statements, submitted to it by Dealer unless
       authorized to do so by Dealer, or required by law.
10.4   Until the expiration or prior termination of this Agreement and
       thereafter until consummation of all the transactions referred to in
       Paragraph 17.1 hereof, the Company,

                                                                              10
<PAGE>

       through its designated employees and other designees, shall have the
       right, at all reasonable times during regular business hours and on
       reasonable notice, to inspect Dealer's books and records and all Jaguar
       products on hand at the Dealership Facilities and Dealer shall cooperate
       fully and take all reasonable actions necessary to facilitate such
       inspections.

ARTICLE 11 -       TRADEMARKS

11.1   Except as otherwise specifically authorized by the Company, Dealer may
       use Jaguar Trademarks only:
(a)    In connection with the promotion and sale from the Dealership Facilities
       of new, or used Select Edition (R), Jaguar Products and customer service
       for such Jaguar Products, pursuant to the terms of this Agreement; and
(b)    Only in such manner and for such purposes incident to such promotion,
       sale and customer services as the Company may specify from time to time.
11.2   Except as indicated in the preceding paragraph, Dealer shall not use, for
       any purpose or in any manner, any word, coined word, symbol, or
       abbreviation which is similar to, or may be confused with, or contains a
       significant part or element of any Jaguar Trademark. Dealer shall not use
       as part of its corporate or trade name the word "Jaguar" unless expressly
       authorized to do so by the Company in writing. Dealer is expressly
       authorized to use the designation "Authorized Jaguar Dealer," "Genuine
       Jaguar Parts" and "Authorized Jaguar Service." No Jaguar Trademark may be
       used except in the color, size, form and style as uniformly approved by
       the Company. Dealer shall not remove or alter any Jaguar Trademark
       affixed to any Jaguar Product. Dealer shall not file, register, or record
       with any federal, state, local government, or agency thereof any name,
       design or form which may conform to or be confused with a Jaguar
       Trademark. Dealer acknowledges the exclusive ownership by Jaguar Cars
       Ltd. or the Company of, and the validity of, the Jaguar Trademarks and
       all registrations thereof, and shall not contest during the term of this
       Agreement or at any time thereafter such exclusive ownership of, or the
       validity of, the Jaguar Trademarks and all registrations thereof. The
       parties agree to cooperate with each other and with Jaguar Cars Ltd. in
       preventing any acts of trademark infringement or unfair competition with
       respect to any Jaguar Trademark, but Jaguar Cars Ltd. and the Company
       shall have sole control over all actions and legal proceedings to
       suppress infringement of and unfair competition with respect to any
       Jaguar Trademark.
11.3   Dealer shall discontinue the use of any Jaguar Trademark upon the
       termination of this Agreement. In the event Dealer fails to comply with
       the terms of this paragraph, the Company shall serve Dealer with written
       notice of such failure and demand that Dealer immediately cease and
       desist from the use of said trademarks. If after thirty (30) days Dealer
       has failed to comply with said notice, Dealer shall be liable, in
       addition to any other penalty available at law or in equity, and hereby
       agrees to pay to the Company, the sum of One Hundred ($100.00) Dollars
       per diem for every day or part thereof that its default under said notice
       shall remain uncured.

ARTICLE 12 -       ADVERTISING AND MERCHANDISING

12.1   Both the Company and Dealer recognize the need to maintain uniformly high
       standards in the advertising and merchandising of Jaguar Products. Dealer
       commits to conduct all of its advertising and merchandising efforts in a
       truthful and ethical manner and consistent with the reputation and image
       of Jaguar Products.

                                                                              11
<PAGE>

12.2   The Company will supply Dealer with advertising materials on such terms
       and conditions as the Company may from time to time establish. Dealer
       shall forthwith discontinue any advertising and cease to use or sell any
       promotional materials or accessories to which the Company reasonably
       objects in writing.
12.3   Dealer is expected to participate in the National Cooperative Advertising
       Program and, where applicable, in the Major Market Advertising Program,
       which are funded jointly by the Company and its authorized dealers and
       operated by the Company, with the advice and consent of the Company's
       authorized dealers. Failure by the Dealer to participate in such
       programs, when a majority of other authorized dealers in the nation or in
       Dealer's metropolitan area are participating, as the case may be, is
       inconsistent with Dealer's obligations under this Agreement.
12.4   The Company will offer to Dealer, on the same terms and conditions as
       other authorized dealers, such sales aids as brochures, posters,
       promotional kits and similar advertising materials as the Company may
       from time to time prepare and disseminate. Dealer will acquire such sales
       aids as are reasonably necessary for the operation of its dealership.

ARTICLE 13 -        INDEMNIFICATIONS

13.1 (a)   The Company shall indemnify and hold Dealer harmless from loss,
           damages and expense, including reasonable attorneys' fees, resulting
           from or arising out of lawsuits filed against Dealer (i) which seek
           damages for bodily injury or property damage (other than claims of
           breach of warranty or violations of the Magnusson-Moss Act, state
           repair/replace statutes or similar federal, state or local laws)
           caused by an alleged defect in the design or the manufacture of a
           Jaguar Vehicle, not reasonably susceptible of discovery by Dealer in
           either its pre-delivery inspection and preparation of the Jaguar
           Vehicle or subsequent servicing, and (ii) which do not plead claims
           against Dealer for negligence in the preparation, servicing, or
           repair of a Jaguar Product.
     (b)   If any lawsuit pleads claims against Dealer for acts of negligence in
           the preparation, servicing or repair of a Jaguar Product, the Company
           shall nevertheless defend and indemnify Dealer, if the Company,
           acting in good faith, makes a determination that the allegations of
           dealer negligence are without merit or are not a genuine issue in the
           lawsuit. Such initial determination shall, however, be subject to
           review and reconsideration by the Company during the course of the
           lawsuit. If the Company at any time determines in good faith that the
           allegations of dealer negligence do raise a genuine issue in the
           lawsuit, the Company will so advise Dealer, shall tender to Dealer
           the defense of the lawsuit from that time forward, and shall have no
           further obligation to defend or indemnify Dealer under this
           provision.
13.2 (a)   Dealer shall indemnify and hold the Company harmless from loss,
           damage and expense, including reasonable attorneys' fees, resulting
           from or arising out of lawsuits filed against the Company concerning:
           (i)    Dealer's alleged failure to perform, or negligent performance
                  of, its service obligations under this Agreement, or any
                  maintenance or repair service performed on any Jaguar Vehicle
                  or other motor vehicle sold or serviced by Dealer;
           (ii)   Dealer's alleged breach of any contract between Dealer and
                  Dealer's customer, provided, however, that the breach was not
                  caused by any act or omission on the part of the Company;
           (iii)  Dealer's alleged misleading statements, misrepresentations or
                  unfair or deceptive acts or practices, whether through
                  advertisement or otherwise, affecting any

                                                                              12
<PAGE>

                  customer of Dealer, provided, however, that the statements,
                  representations or advertisements are not based on information
                  or material produced or supplied by the Company.
(b)        In the event that any action based upon or relating to allegations
           set forth in subparagraph (i) through (iii) above is filed naming the
           Company as a defendant, Dealer will, following receipt of notice from
           the Company, undertake the defense of the action on behalf of the
           Company at Dealer's sole expense. Dealer is specifically authorized
           by the Company to settle or defend any such action on behalf of the
           Company provided that the cost of said defense and/or settlement and
           any judgment are borne exclusively by Dealer.
(c)        If Dealer refuses for any reason to undertake the Company's defense
           when obligated to do so under this article, the Company may conduct
           its own defense and Dealer shall be liable for any judgments, costs
           and attorneys' fees paid or incurred by the Company with respect
           thereto.
(d)        Dealer shall have the right to decline to accept the Company's
           defense or, having accepted such defense may, prior to trial, tender
           such defense back to the Company, if Dealer, acting in good faith,
           makes a determination that the allegations upon which the action is
           based do not fall within the terms of subparagraphs 13.2 (a)
           (i)-(iii) herein.
13.3 (a)   If Dealer or the Company intends to request of the other
           indemnification or defense with respect to any lawsuit, each shall,
           no later than ten (10) days after service of a complaint, notify the
           other in writing of such request and shall supply to the other copies
           of any pleadings served to date and any information then reasonably
           available concerning the circumstances allegedly giving rise to such
           complaint.
     (b)   Any request for defense and indemnification shall be accepted or
           rejected by the party to whom the request is made within ten (10)
           days following receipt of such request. Prior to receipt of a
           response to its request, each party agrees to take all reasonable
           steps to ensure that defense of the complaint is in no way
           prejudiced. If the request is accepted, the party making the request
           shall cooperate fully in the defense of the complaint in such manner
           and to such extent as the party assuming the defense may reasonably
           require. Any expenses incurred by either party prior to acceptance of
           any request for defense and indemnification shall be borne solely by
           the party making such request.

ARTICLE 14 -      TERMINATION OF THE AGREEMENT
                  PRIOR TO ITS EXPIRATION

14.1   Subject to the terms and conditions of paragraph 17.4 hereof, the Company
       and Dealer may at any time prior to the expiration date of this Agreement
       agree to terminate this Agreement on such terms and subject to such
       conditions as the parties hereto may consider mutually satisfactory.
14.2   Subject to the terms and conditions of paragraph 17.4 hereof, Dealer may
       terminate this Agreement, by sending notice of such termination to the
       Company sixty (60) days prior to the effective date of such termination.
14.3   The Company may terminate this Agreement upon thirty (30) days prior
       written notice to Dealer in the event that any licensing or distribution
       agreement or similar arrangement pursuant to which the Company is the
       distributor of Jaguar Products in the United States shall terminate or
       expire without renewal, provided that Jaguar Cars Exports Limited shall,
       if it continues distribution in the United States through a subsidiary or
       a third party

                                                                              13
<PAGE>

       distributor, cause such entity to offer to Dealer, if Dealer is then in
       good standing under this Agreement, a new Dealer Agreement on
       substantially the same terms and conditions as are set forth herein.
14.4   If Dealer fails to secure or maintain any license or if any license of
       the Company or Dealer, required for the performance of its obligations
       under this Agreement, is suspended or revoked, regardless of the reason,
       and such suspension or revocation is upheld after exhaustion of such
       appeals as may be pursued, either party may terminate this Agreement by
       giving written notice to the other.
14.5   The Company and Dealer agree that the following acts are so contrary to
       the spirit and purpose of this Agreement as to warrant its termination:
(a)    Any material misrepresentation by Dealer's owners, officers or Dealer
       Operator as to any fact relied upon by the Company in entering into this
       Agreement;
(b)    Any attempted or actual sale, transfer or assignment by Dealer of this
       Agreement, or any of the rights granted to it under this Agreement, or
       any attempted or actual transfer, assignment or delegation by Dealer of
       any of the responsibilities assigned to Dealer under this Agreement;
(c)    Any attempted or actual sale, transfer or assignment by Dealer of all or
       substantially all of the assets used by Dealer in its Jaguar Operations,
       without prior consultation with and the prior written approval of the
       Company, which approval shall not be unreasonably withheld, provided that
       Dealer has fulfilled the terms and conditions of Article 5 hereof;
(d)    Any change, whether voluntary or involuntary, in the ownership or
       management of Dealer as set forth in Paragraph 6 of the Dealer Agreement,
       without prior consultation with and the prior written approval of the
       Company, which approval shall not be unreasonably withheld, provided
       Dealer has fulfilled the terms and conditions of Article 5 hereof;
(e)    Any change in the location of any of the Dealership Facilities or the
       establishment of additional facilities without prior consultation with
       and the prior written approval of the Company, which approval shall not
       be unreasonably withheld, provided Dealer has fulfilled the terms and
       conditions of Article 4 hereof;
(f)    Insolvency of Dealer or the voluntary filing by Dealer of a petition in
       bankruptcy, or filing of a petition to have Dealer declared bankrupt,
       providing the petition is not vacated within sixty (60) days; or the
       appointment of a receiver or trustee for Dealer or Dealer's business who
       is not removed within sixty (60) days; or any levy under attachment,
       execution or similar process or the execution of an assignment for the
       benefit of creditors, or any process of law by which a third party
       acquires rights in or to the ownership, operations or facilities of
       Dealer;
(g)    Conviction in any court of competent jurisdiction of Dealer, or of any of
       the persons named in Paragraph 6 of the Dealer Agreement, of any crime or
       violation of law; or the finding by any government agency or court that
       Dealer has committed any unfair business practice, or, having been
       charged with any such unfair business practice, the operative provisions
       of a resolution of such charge permits the inference that all or some of
       the acts charged actually occurred;
(h)    Submission by Dealer of false reports, statements or claims on a repeated
       basis, or of any fraudulent report, statement or claim;
(i)    Failure by Dealer to conduct its sales, service and parts operations
       during the customary business hours of the trade in Dealer's area for six
       (6) or more consecutive business days, unless such failure is caused by
       contingencies beyond the reasonable control of Dealer, as more fully
       described in Paragraph 18.8 hereof;

                                                                              14
<PAGE>

(j)    Substantial impairment of the financial condition of Dealer or, to the
       extent it materially and adversely affects Dealer, of any of Dealer's
       owners;
(k)    Dealer's refusal or inability to pay any amount owed by Dealer to the
       Company after demand for such payment has been made by the Company to
       Dealer;
(l)    Within the limitations, if any, of the supply of Jaguar Vehicles made
       available to Dealer by the Company, failure by Dealer to achieve such
       reasonable sales objectives as may from time to time be established by
       the Company.
(m)    The failure by Dealer to maintain warranty records in accordance with the
       Company's warranty policies and procedures, after notice by the Company
       to Dealer of such failure and a reasonable opportunity to cure, it being
       recognized by both parties that such records are vital to the processing
       and substantiation of warranty claims submitted by Dealer to the Company;
(n)    Any substantial breach or violation of any material obligation contained
       in this Agreement.
14.6   If the company determines that Dealer has failed to provide adequate
       Dealership Facilities, in accordance with the standards set forth in this
       Agreement, or has failed to fulfill the sales and service obligations
       Dealer has assumed under this Agreement, the Company will advise Dealer
       of such failure and attempt to discuss it with Dealer. Thereafter, the
       Company shall notify Dealer in writing by Certified or Express Mail of
       the nature of the failure, of the acceptable remedy and of the period of
       time (not less than six months) during which Dealer will be expected to
       remedy the failure. If Dealer refuses to enter into a Performance
       Agreement acceptable to the Company with respect to those failures
       identified in the Company's notice or fails to substantially remedy such
       failures at the end of the period provided for in such notice or
       Performance Agreement, the Company may terminate this Agreement upon
       ninety (90) days written notice to Dealer.
14.7   Failure by the Company to terminate this Agreement pursuant to Paragraphs
       14.5 or 14.6, shall not be deemed a waiver of the Company's right to so
       terminate this Agreement unless and until the event or situation
       entitling the Company to terminate this Agreement has ceased to exist.

ARTICLE 15 -      RIGHT OF SUCCESSION

15.1   The Company may terminate this Agreement by written notice to Dealer if
       any person listed in Paragraph 6 of the Dealer Agreement dies or if the
       Dealer Operator is so physically or mentally incapacitated as to be
       unable to actively exercise full managerial authority over Dealer. The
       effective date of the termination shall be stated in the notice, but will
       not be less than ninety (90) days after receipt of the notice.
15.2   (a) Notwithstanding the right of the Company to terminate this agreement
       upon death or incapacity as set forth above, the Company will not
       terminate this Agreement if:
       (i)    The surviving owners, officers or Dealer Operator listed in
              Paragraph 6 of the Dealer Agreement remain unchanged and can in
              the opinion of the Company, comply with the requirements imposed
              upon Dealer by this Agreement; or
       (ii)   Within the 90-day notice period referred to above, or such
              reasonable time as circumstances may require and the Company may
              approve, arrangements are completed for the assumption of active
              management and/or ownership of Dealer during the remainder of the
              term of this Agreement by persons satisfactory to the Company; or

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<PAGE>

       (iii)  The Company has previously approved a Designated Successor for the
              deceased owner, officer or Dealer Operator in accordance with
              procedures established by the Company from time to time.
       (b) In the event that the deceased owner, officer or Dealer Operator is
           possessed of a beneficial interest in Dealer which, by reason of
           death, passes directly to his/her surviving spouse and/or children
           and if the surviving owners, officers or Dealer Operator of Dealer
           listed in Paragraph 6 of the Dealer Agreement can, in the opinion of
           the Company, comply with the requirements imposed upon Dealer by this
           Agreement, the Company will consent to the retention by such spouse
           and/or children of any such interest in Dealer subject, however, to
           the rights, if any, of the surviving owner(s), officer(s) or Dealer
           Operator to buy out the spouse's and/or children's interest in
           accordance with any agreement made between or among them.

ARTICLE 16 -         EXTENSIONS AND RENEWAL OF AGREEMENT

16.1   This Agreement can be extended or renewed only through an express written
       instrument to that effect and only if such instrument is duly executed by
       an Executive Officer of the Company and by a duly authorized person
       listed in Paragraph 6 of the Dealer Agreement. Any business relations of
       any nature whatsoever between the Company and Dealer after the expiration
       of this Agreement or after its prior termination pursuant to the terms of
       this Agreement, without such written extension or renewal shall not
       operate as an extension or renewal of this Agreement. Nevertheless, all
       such business relations, so long as they are continued, shall be governed
       by terms identical with the provisions of this Agreement.

ARTICLE 17 -         RIGHTS AND OBLIGATIONS UPON
                     TERMINATION OF AGREEMENT

17.1   Upon termination of this Agreement by either party or upon its expiration
       without renewal, the Company will repurchase from Dealer the following
       assets only, free and clear of any liens or encumbrances:
       (a) All new and unused Jaguar Vehicles of the then current or preceding
           model year bought by Dealer from the Company, for which the Company
           will pay Dealer the net price paid by Dealer for such vehicles, less
           a deduction for any damage and less any applicable rebates or
           allowances;
       (b) All new, unused and undamaged Jaguar Parts still in their original
           packaging (i) which Dealer purchased from the Company during the
           12-month period preceding the effective date of termination of the
           Agreement (the "Matching Period") and (ii) which Dealer purchased
           prior to the Matching Period, but which are then classified by the
           Company as "Jaguar Stocking Parts," meaning those parts which the
           Company is then selling and can reasonably expect to sell to dealers
           in the future. The Company will pay Dealer for those eligible parts
           actually returned to it under this provision the dealer price for
           such parts in effect at the time the parts are returned to the
           Company.
       (c) Jaguar Signs which the Dealer purchased from the Company or from a
           supplier approved by the Company. The Company will pay for such
           Jaguar Signs, Dealer's original purchase price for such signs, less
           "straight-line" depreciation computed on the basis of a useful life
           of five years;
       (d) Special tools and equipment purchased by Dealer during the Matching
           Period from the Company. The Company will pay for such special tools
           and equipment Dealer's

                                                                              16
<PAGE>

           original purchase price therefor, less "straight-line" depreciation
           computed on the basis of a useful life of five years and subject to
           adjustments based on use and condition;
       (e) Dealer shall be responsible for returning to the Company, on a
           freight prepaid basis, any assets which the Company is obligated to
           repurchase from Dealer in accordance with the terms of this
           Agreement.
17.2   The Company may require and Dealer commits to supply proof that any
       Jaguar Products eligible for repurchase in accordance with the terms and
       conditions of Paragraph 17.1 are free and clear of any liens or
       encumbrances.
17.3   Upon termination of this Agreement, all pending unfilled orders from
       Dealer for Jaguar products shall be deemed cancelled. The Dealer shall
       thereupon discontinue the use of all Jaguar Trademarks by removing the
       same from the Dealership Facilities and from all advertising, signs,
       stationery, brochures, and the like, and will not thereafter advertise
       itself or hold itself out as an Authorized Jaguar Dealer.
17.4   Upon termination of this Agreement by either party, upon its expiration
       without renewal, or upon the Company's approval of any purchaser(s) of
       Dealer or of all or substantially all of the assets used in Dealer's
       Jaguar Operations in accordance with the terms and conditions of this
       Agreement, the Company and Dealer shall execute and deliver to each other
       the form of Mutual Release and Termination Agreement then in use by the
       Company. Said Mutual Release and Termination Agreement (i) shall
       unconditionally terminate the Dealer Agreement then in force between the
       Company and Dealer and (ii) shall provide for the mutual release by each
       of the parties hereto of any and all claims either may have against the
       other, excepting only such claims as are then known to and pending
       between the Company and Dealer and which are expressly set forth and
       specified in said Mutual Release and Termination Agreement.

ARTICLE 18 -        MISCELLANEOUS PROVISIONS

18.1   Dealer understands and acknowledges that this Agreement, and any
       modifications or amendments or any notice of prior termination of this
       Agreement, shall be effective only if signed by an Executive Officer of
       the Company, except with respect to Performance Agreements which may be
       signed by a Zone Manager of the Company. Except as provided for in the
       preceding sentence, no contracts, agreements, representations,
       understandings, arrangements, modifications or amendments of any kind
       with respect to this Agreement will be binding upon the Company.
18.2   This Agreement contains the entire agreement between the parties, except
       with respect to any Performance Agreement(s) between the parties which
       is/are expressly made a part thereof. No representations or statements,
       other than those expressly set forth herein, were made or relied upon by
       the Company or Dealer in entering into this Agreement.
18.3   This Agreement is made solely by and between the Company and Dealer and
       neither confers upon, nor shall be deemed to confer upon, any person not
       a party hereto any third party rights or benefits of any kind.
18.4   Nothing herein shall be deemed to make Dealer an agent for the Company in
       any respect, nor is Dealer authorized to transact any business or to
       incur any obligation or liability on behalf of the Company.
18.5   Any notices under, or pursuant to, the provisions of this Agreement shall
       be directed to the respective addresses of the parties stated herein or,
       if either of the parties shall have

                                                                              17
<PAGE>

       specified another address by notice in writing to the other party, to the
       address so specified. The parties shall advise each other forthwith, in
       writing, of any change of such address.
18.6   Except as otherwise provided for in this Agreement, the failure of either
       party at any time to require performance by the other party of any
       provision hereof shall in no way affect the full right to require such
       performance at any time thereafter, nor shall the waiver by either party
       of a breach of any provision hereof constitute a waiver of any succeeding
       breach of the same or any other such provision, nor constitute a waiver
       of the provision itself.
18.7   Nothing in this Agreement shall give Dealer the right to continue to be
       supplied by the Company with the Jaguar Vehicle line or any particular
       Jaguar Vehicle models, which may at any time be withdrawn or suspended
       from importation and sale in the United States, without prior notice to
       Dealer and without any obligation or liability on the part of the Company
       by reason thereof. Nothing in this Agreement shall give Dealer the right
       to sell any vehicle line, distributed by the Company or any successor of
       the Company, other than Jaguar Vehicles.
18.8   Performance of this Agreement or of any contract for the delivery of
       Jaguar Products is subject to all contingencies beyond the reasonable
       control of either party, such as labor disputes or work stoppages,
       production or shipping restrictions or delays, governmental orders or
       restrictions, acts of God, or force majeure. The obligations of either
       party shall be suspended during any such contingency, without liability
       to the other for direct or consequential damages and without extending
       the term of this Agreement.
18.9   Dealer acknowledges and understands that Federal law requires
       manufacturers of motor vehicles sold in the United States to affix to
       designated items of original equipment, and replacement parts for such
       equipment, labels containing certain identifying information ("anti-theft
       labels"). In certain cases, the manufacturer of Jaguar Vehicles places a
       transparent paint mask over such anti-theft labels. Dealer will, when
       performing any service or repair work (such as painting or rust proofing)
       insure that such anti-theft labels are neither obliterated nor obscured
       and will remove any protective paint masks prior to delivering or
       returning a Jaguar Vehicle to a customer.
18.10  Except as otherwise specifically provided for herein, where a response is
       required of either party to any action, proposal or submission of the
       other, the parties agree to use their best efforts to respond as
       expeditiously as shall be, under all the relevant circumstances,
       practicable.

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