1 EXHIBIT 10.25 [*] Confidential Treatment has been requested for certain portions of this exhibit. DATED 23rd NOVEMBER, 1998 autobytel.com inc. and INCHCAPE AUTOMOTIVE LIMITED ------------------------ SHARE PURCHASE AGREEMENT ------------------------ Slaughter and May 35 Basinghall Street London EC2V 5DB (NPB/NSXM) CD982390.004 2 CONTENTS PAGE 1. Interpretation 1 2. Sale and Purchase 5 3. Repayment of Indebtedness by the Company to ABT 5 4. Consideration 5 5. Completion 6 6. ABT's Warranties and Covenants 7 7. Restrictions on ABT's Business Activities 8 8. Restrictions on the activities of the Company, Inchcape and the Inchcape Group 9 9. Access 10 10. Effect of Completion 10 11. Remedies and Waivers 10 12. Restrictions on Share Transfers 10 13. Further Assurance 13 14. Entire Agreement 13 15. Notices 14 16. Announcements 15 17. Restrictive Trade Practices Act 1976 16 18. Costs and Expenses 16 19. Counterparts 16 20. Time of Essence 16 21. Invalidity 16 22. Choice of Governing Law 17 23. Jurisdiction 17 3 24. Agent for Service 17 SCHEDULES Schedule 1 (Completion Arrangements) 19 Schedule 2 (Representations and Warranties) 21 Schedule 3 (Ownership of the Shares) 24 Schedule 4 (Basic Information about the Company) 25 Schedule 5 (List of Commitments and Liabilities of the Company) 27 4 THIS AGREEMENT is made on the 23rd day of November, 1998 BETWEEN:- 1. autobytel.cominc., a company incorporated in Delaware whose principal office is at 18872 MacArthur Boulevard, Irvine, California 92612, USA ("ABT") AND 2. INCHCAPE AUTOMOTIVE LIMITED, a company incorporated in England under number 3580629 whose registered office is at 33 Cavendish Square, London W1M 9HF ("INCHCAPE") WHEREAS:- (A) Particulars of the Company (as defined in this agreement) are set out in Schedule 4 (Basic Information about the Company). (B) ABT has agreed to sell or procure the sale of, and Inchcape has agreed to purchase, the Shares (as defined in this agreement) on the terms and subject to the conditions of this agreement. (C) The Company has entered into a License and Services Agreement with ABT of even date herewith. (D) The business of the Company is to conduct and develop an electronic commerce business in connection with the sale in the Territory of new and used cars through the Internet. IT IS HEREBY AGREED as follows:- 1. INTERPRETATION 1.1 In this agreement and the Schedules to it:- "ABT'S SOLICITORS" means Skadden, Arps, Slate, Meagher & Flom LLP; "BOOKS AND RECORDS" has its common law meaning and includes, without limitation, all notices, correspondence, orders, inquiries, drawings, plans, books of account and other documents and all computer disks or tapes or other machine legible programs or other records; "BUSINESS DAY" means a day (other than a Saturday or a Sunday) on which banks are open for business in London and New York; 5 2 "BUSINESS INFORMATION" means all information and records (whether or not confidential and in whatever form held) including (without limitation) all business plans and forecasts, monthly financial statements and contact lists of motor dealers contacted or visited by the Company; "BUSINESS PLAN" means the business plan for the five year period to 31st December 2003 to be adopted by the Company prepared by, inter alia, Inchcape and ABT and any drafts thereof; "COMPANIES ACTS" means the Companies Act 1985, the Companies Consolidation (Consequential Provisions) Act 1985, the Companies Act 1989 and Part V of the Criminal Justice Act 1993; "COMPANY" means Auto-by-Tel UK Limited, basic information concerning which is set out in Schedule 4 (Basic Information about the Company); "COMPLETION" means completion of the sale and purchase of the Shares under this agreement; "COMPLETION DATE" means the date of this agreement; "CONFIDENTIAL BUSINESS means Business Information (other than the Business INFORMATION" Plan and any information contained therein) which is confidential or not generally known; "GROUP" means in relation to any body corporate, any subsidiary undertaking for the time being of that body corporate, any parent undertaking for the time being of that body corporate and any subsidiary undertaking for the time being of such a parent undertaking; "INCHCAPE'S SOLICITORS" means Slaughter and May; "INTERNET" means the global collection of telecommunications and information computer networks known as the Internet as may be constituted from time to time; "LICENSE AND SERVICES means the License and Services Agreement to be AGREEMENT" entered into between ABT and the Company of even date herewith to which is attached, inter alia, The Work Order for Initial Localization Software Development; 6 3 "PERMITTED SECURITY means a mortgage, charge or pledge of all or any of the INTEREST" Shares to a credit institution authorised for the purpose of deposit-taking business by the Financial Services Authority pursuant to the Banking Act 1987 provided that any such mortgage, charge or pledge provides that the provisions of clause 12 shall be applicable to such Shares if such Shares are to be foreclosed upon by a mortgagee, chargee or pledgee; "PROCEEDINGS" means any proceeding, suit or action arising out of or in connection with this agreement; "PROPERTY" means freehold, leasehold or other immovable property in any part of the world; "RETAINED GROUP" means, in relation to its subsidiaries and subsidiary undertakings from time to time, any holding company of ABT and all other subsidiaries or subsidiary undertakings of any such holding company (except of the Company); "RTPA 1976" means the Restrictive Trade Practices Act 1976; "SERVICE DOCUMENT" has the meaning given in clause 24 (Agent for Service); "SHARES" means all the issued ordinary shares of Ll each in the capital of the Company; "SHARE PURCHASE has the meaning given to it in clause 14 (Entire DOCUMENTS" Agreement); "TAX" OR "TAXATION" means and includes all forms of taxation and statutory, governmental, supra-governmental, state, principal, local governmental or municipal impositions, duties, contributions and levies, in each case whether of the United Kingdom or elsewhere and whenever imposed, and all penalties, charges, costs and interest relating thereto and without limitation all employment taxes and any deductions or withholdings of any sort; "TERRITORY" means the United Kingdom; 7 4 "WARRANTIES" means the representations and warranties set out in Schedule 2 (Representations and Warranties) given by ABT and any other representations or warranties made by or on behalf of ABT in this agreement or which have become terms of this agreement and "WARRANTY" shall be construed accordingly; "WORKING HOURS" means 2.30 p.m. to 5.30 p.m. (London time) on a Business Day; 1.2 in this agreement, unless otherwise specified:- (A) references to clauses, sub-clauses and Schedules are to clauses, sub-clauses and Schedules to, this agreement; (B) a reference to any statute or statutory provision shall be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or re-enacted; (C) references to a "COMPANY" shall be construed so as to include any company, corporation or other body corporate, wherever and however incorporated or established; (D) references to a "PERSON" shall be construed so as to include any individual, firm, company, government, state or agency of a state or any joint venture, association or partnership (whether or not having separate legal personality); (E) references to "INDEMNIFY" and "INDEMNIFYING" any person against any circumstance include indemnifying and keeping him harmless from all actions, claims and proceedings from time to time made against that person and all loss or damage and all payments, costs or expenses made or incurred by that person as a consequence of or which would not have arisen but for that circumstance; (F) the expressions "BODY CORPORATE", "SUBSIDIARY", "SUBSIDIARY UNDERTAKING" and "PARENT UNDERTAKING" shall have the meaning given in the Companies Acts; (G) references to writing shall include any modes of reproducing words in a legible and non-transitory form; (H) references to times of the day are to London time; (I) headings to clauses and Schedules are for convenience only and do not affect the interpretation of this agreement; 8 [*] Confidential Treatment Requested. 5 (J) the Schedules form part of this agreement and shall have the same force and effect as if expressly set out in the body of this agreement, and any reference to this agreement shall include the Schedules; (K) (i) the rule known as the ejusdem generis rule shall not apply and accordingly general words introduced by the word "other" shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or things; and (ii) general words shall not be given a restrictive meaning by reason of the fact that they are followed by particular examples intended to be embraced by the general words. 2. SALE AND PURCHASE 2.1 ABT hereby agrees to sell or procure the sale of and Inchcape agrees to purchase the Shares with all rights attached or accruing to them at Completion. 2.2 ABT has the right to transfer or procure the transfer of legal and beneficial title to the Shares. 2.3 The Shares shall be free from all charges and encumbrances and from all other rights exercisable by or claims by third parties. 3. REPAYMENT OF INDEBTEDNESS BY THE COMPANY TO ABT 3.1 As at the date of this agreement, the Company owes [*] to ABT which ABT confirms is an interest free loan repayable on demand. Inchcape undertakes that, provided the License and Services Agreement has been executed and delivered, it will procure the valid repayment by the Company of such indebtedness, without interest, to ABT at Completion or within 2 Business Days of Completion. 3.2 Inchcape confirms that until such time as the License and Services Agreement is validly terminated or, if earlier, until such time as Inchcape ceases to own the entire beneficial interest in [*] or more of the issued share capital of the Company or at least [*] of the votes generally exercisable at any general meeting thereof, it will provide or procure for the Company such finance as shall be necessary to ensure the adequate funding of the Company to enable it to meet its obligations under the License and Services Agreement. 4. CONSIDERATION 4.1 The total consideration for the sale of the Shares to Inchcape shall be the payment by Inchcape of the sum of L2.00 in accordance with clause 5 (Completion). 4.2 In the event that, prior to the termination or expiry of the License and Services Agreement, Inchcape or any member of the Inchcape Group sells any or all of the 9 [*] Confidential Treatment Requested. 6 Shares or any interest therein to a third party, otherwise than pursuant to clause 12.8, ABT shall be entitled to receive, as additional consideration for the sale of the Shares pursuant to clause 2, an amount equal to [*] of any consideration paid pursuant to such sale. Such amount shall be paid no later than five days following the completion of such sale. If the consideration for the Shares or interest therein to be received pursuant to such sale is other than cash, unless otherwise agreed by ABT and Inchcape, an independent valuer (who shall be an internationally recognised investment banking or accountancy firm, experienced in the valuation of companies carrying on a similar business to that of the relevant third party) shall be appointed by Inchcape to assess the cash equivalent of such non-cash consideration and ABT shall be entitled to receive an amount equal to [*] of the amount of the cash equivalent so determined. 4.3 Inchcape shall notify ABT within five days following the appointment of an independent valuer pursuant to clause 4.2 and, in the event that ABT shall object to the appointment of such independent valuer within five days of being so notified by Inchcape, either Inchcape or ABT may request the President of the Institute of Chartered Accountants in England and Wales to nominate a suitable independent valuer for the purpose of assessing the cash equivalent of the non-cash consideration referred to in clause 4.2 who shall thereupon be appointed by Inchcape as aforesaid. 4.4 Prior to the termination or expiry of the License and Services Agreement, except with the prior consent in writing of ABT (such consent not to be unreasonably withheld or delayed), Inchcape shall not procure or permit any change in the constitution or reorganisation of the affairs of the Company the primary purpose of which is to undermine the commercial intent of the parties as reflected in clause 4.2 above and clause 5.2(b) of the License and Services Agreement. Nothing in this clause 4.4 shall be construed as prohibiting the carrying on of the business of the Company in the ordinary course. Furthermore, nothing in this clause 4.4 shall be construed as prohibiting the directors of the Company from declaring a dividend at any time or incurring borrowings for the purpose of paying such a dividend or as requiring ABT's prior written consent in relation thereto. 5. COMPLETION 5.1 Completion shall take place immediately after signature of this agreement at the offices of Inchcape's Solicitors at 35 Basinghall Street, London EC2V 5DB. 5.2 At Completion ABT shall do those things listed in Schedule 1 (Completion Arrangements). 5.3 Inchcape shall not be obliged to complete this agreement unless ABT complies fully with the requirements of sub-clause 5.2 and Schedule 1 (Completion Arrangements). 5.4 Payment of the amount stated in clause 4 (Consideration) in accordance with Schedule 1 (Completion Arrangements) shall constitute payment of the consideration 10 [*] Confidential Treatment Requested. 7 for the Shares and shall discharge the obligations of Inchcape under clause 2 (Sale and Purchase). 6. ABT'S WARRANTIES AND COVENANTS 6.1 ABT represents and warrants to Inchcape that each of the Warranties is accurate in all respects and not misleading at the date of this agreement and accepts that Inchcape is entering into this agreement in reliance upon each of the Warranties. 6.2 ABT undertakes to disclose in writing to Inchcape anything which is or may constitute a breach of or be inconsistent with any of the Warranties as soon as reasonably practicable after it comes to the notice of ABT both before, at the time of and after Completion. 6.3 ABT undertakes (if any claim is made against it in connection with the sale of the Shares to Inchcape) not to make any claim against the Company or any director, employee or adviser of the Company on whom it may have relied before agreeing to any terms of this agreement. 6.4 Each of the Warranties shall be construed as a separate and independent warranty and (except where expressly provided to the contrary) shall not be limited or restricted by reference to or inference from the terms of any other Warranty or any other term of this agreement. 6.5 No claim shall be brought under any of the Warranties unless the aggregate liability of ABT in respect of all claims thereunder exceeds [*] (in which event Inchcape shall be entitled to damages in respect of the full amount of such claims and not just the excess) provided that the total liability of ABT under the Warranties shall not in any event exceed [*]. No claim shall be brought against ABT in respect of any of the Warranties unless Inchcape shall have given ABT written notice of such claim specifying (in reasonable detail) the matter which gives rise to the claim, the nature of the claim (but not necessarily the amount claimed in respect thereof) on or before the date falling eighteen months after the Completion Date PROVIDED THAT the liability of ABT in respect of any such claim shall absolutely determine if such claim has not previously been satisfied, settled or withdrawn unless legal proceedings in respect thereof shall have been commenced against ABT within 9 months of the giving of the notice as aforesaid. 6.6 Upon Inchcape becoming aware of any possible claim in respect of any of the Warranties, Inchcape shall: (A) as soon as practicable notify ABT thereof by written notice; (B) subject to ABT indemnifying Inchcape in a form satisfactory to Inchcape against any liability, cost, damage or expense which may be incurred thereby, take such action and give such information, access and assistance as ABT may reasonably request and ABT shall be entitled to require Inchcape to take or 11 8 procure to be taken such reasonable action and give such reasonable information and assistance in order to avoid, dispute, resist, mitigate, settle, compromise, defend or appeal any matter in respect thereof or adjudication with respect thereto and Inchcape shall make no, nor permit any, admission of liability, agreement, settlement or compromise with any third party in relation to any matter giving rise to such claim without the prior written consent of ABT such consent not to be unreasonably withheld or delayed and shall take all action to mitigate any loss suffered by it in respect of which a claim could be made under the Warranties. 6.7 Inchcape shall not be entitled to recover damages or otherwise obtain reimbursement or restitution more than once in respect of any individual breach of the Warranties. 6.8 Inchcape shall not be entitled to claim that any fact, matter or circumstance causes any of the Warranties to be breached if in relation to any fact, matter or circumstance forming the basis of the claim Inchcape or its officers or advisers had actual knowledge of it on or before the date of this agreement. 7. RESTRICTIONS ON ABT'S BUSINESS ACTIVITIES 7.1 Without prejudice to the terms of the License and Services Agreement, ABT undertakes to procure that each member of the Retained Group of which ABT forms part will not, either alone or in conjunction with or on behalf of any other person, do any of the following things:- (A) for so long as the License and Services Agreement is in force, either for its own account, or grant to any third party a licence to, use the Software, or the Business Procedures in connection with the operation of a Local Business in the Territory (and for the purposes of this clause 7.1 (A), "Software", "Business Procedures" and "Local Business" shall have the meaning attributed to them in the License and Services Agreement); (B) pass on any copy of the Business Plan to any third party or disclose information derived therefrom concerning numbers of dealers, proposed charges to dealers, amounts paid to any Internet on-line or search engine providers and employee emoluments or Confidential Business Information received by it from the Company to any third party without such third party first having entered into a confidentiality agreement providing, inter alia, that such information shall not be used in any way for the purposes of competing with the Company in the Territory during a minimum period expiring on the earlier of 12 months following the entry into of such confidentiality agreement and 31 December 2000 or during such longer period as ABT using its reasonable endeavours is able to negotiate but in any event not by virtue of this provision expiring later than 31 March 2001. (C) for so long as the License and Services Agreement is in force, either for its own account, or grant to any Third Party the right to, use the ABT Brand in 12 9 connection with a Local Business in the Territory (and for the purposes of this clause 7.1 (C), "ABT Brand" and "Local Business" shall have the meaning attributed to them in the License and Services Agreement); (D) neither pending nor within two years after Completion, solicit or entice away from the employment of the Company any person at present an employee of the Company; nor (E) assist any other person to do any of the foregoing things. 7.2 Each undertaking contained in this clause shall be construed as a separate undertaking and if one or more of the undertakings is held to be against the public interest or unlawful or in any way an unreasonable restraint of trade, the remaining undertakings shall continue to bind ABT. 8. RESTRICTIONS ON THE ACTIVITIES OF THE COMPANY, INCHCAPE AND THE INCHCAPE GROUP 8.1 For the avoidance of doubt and without prejudice to the terms of the License and Services Agreement, nothing in this agreement shall be construed to prohibit Inchcape, any member of the Inchcape Group or the Company from competing with ABT or any member of the ABT Group outside the Territory provided that it or they, as the case may be, do not utilise the ABT Brand, Documentation, Global Brand Protocols and Software (in each case as defined in the License and Services Agreement) in the Territory or otherwise other than as permitted pursuant to the License and Services Agreement. 8.2 Inchcape undertakes to procure that no information disclosed to it or to the Company or any of their respective directors officers employees agents representatives affiliates auditors or other persons acting on their behalf (which information is confidential and not generally known other than as a result of any breach of this undertaking) by ABT or any licensee of ABT and no analyses, compilations, studies, notes or other documents prepared by or for Inchcape or the Company which contain or are based upon such information (including, without limitation, any information which is the subject matter of the License and Services Agreement) shall be disclosed (i) to any other member of the Inchcape Group save that Inchcape shall be permitted to supply such information regarding the financial position and affairs of the Company as shall reasonably be necessary for the purposes of preparation of management and audited accounts of the Inchcape Group of which the Company is a member and otherwise as may be required to enable any holding company thereof to perform its legal and regulatory obligations or (ii) to any third party other than by the Company in accordance with the License and Services Agreement. 8.3 In the event that the License and Services Agreement shall be terminated or upon the Company ceasing to carry on business or being placed into liquidation, Inchcape shall procure that the name of the Company (and any entity controlled thereby) is changed so as no longer to include the name, initials, trademark, service mark or logo or any reference to the name, initials, trademark, service mark or logo of ABT or any 13 [*] Confidential Treatment Requested. 10 variation thereof or name, initials, trademark, service mark or logo that may reasonably be confused therewith. 9. ACCESS As from the date of this agreement, Inchcape and any persons authorised by it will be given full access to the premises at Central Business Exchange II, West Wing 382-390 Midsummer Boulevard, Central Milton Keynes, MK9 2RG or any other premises from where the Company carries on business and all the Books and Records and title deeds of the Company and the directors and employees of the Company and the Company will be instructed to give promptly all information and explanations to Inchcape or any such persons as they may request. 10. EFFECT OF COMPLETION Any provision of this agreement and any other documents referred to in it which is capable of being performed after but which has not been performed at or before Completion and all Warranties and covenants and other undertakings contained in or entered into pursuant to this agreement shall remain in full force and effect notwithstanding Completion. 11. REMEDIES AND WAIVERS 11.1 No delay or omission by any party to this agreement in exercising any right, power or remedy provided by law or under this agreement shall:- (A) impair such right, power or remedy; or (B) operate as a waiver thereof 11.2 The single or partial exercise of any right, power or remedy provided by law or under this agreement shall not preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 11.3 The rights, powers and remedies provided in this agreement are cumulative and not exclusive of any rights, powers and remedies provided by law. 12. RESTRICTIONS ON SHARE TRANSFERS 12.1 Inchcape shall not (other than to a Group Transferee (as defined in clause 12.8 below)) transfer, by one or more transactions, [*] or more of the Shares or any interest therein for a period of 365 days from the Launch Date (as defined in the License and Services Agreement). Subject to the provisions of this clause 12, Inchcape is and shall be entitled to transfer up to (but not including) [*] of the Shares or any interest therein by one or more transactions at any time after Completion. 14 11 12.2 If, without prejudice to clause 12.1 and subject to clause 12.8, prior to or within the one year period following the termination or expiry of the License and Services Agreement, Inchcape wishes to transfer any Shares or any interest therein (the "SALE SHARES") to a third party, Inchcape shall give to ABT notice in writing (a "TRANSFER NOTICE") of such desire together with details of any proposed third party purchaser thereof (the "THIRD PARTY PURCHASER"), the purchase price and other material terms agreed between Inchcape and the Third Party Purchaser and such Transfer Notice shall constitute an offer made by Inchcape to ABT to acquire the Sale Shares on the terms specified in the Transfer Notice. A Transfer Notice shall, except as hereinafter provided, be irrevocable. 12.3 On receipt of the Transfer Notice, ABT shall have the right to purchase all (but not some only) of the Sale Shares on the terms specified in the Transfer Notice by giving written notice (the "ACCEPTANCE NOTICE") to Inchcape within 1 month of the later of receipt of the Transfer Notice and the delivery to ABT of a copy of the report of any independent valuer appointed pursuant to clause 12.5. 12.4 ABT shall become bound to purchase the Sale Shares following the giving of the Acceptance Notice to Inchcape. In such event, completion of the sale and purchase of the Sale Shares shall take place within thirty days after the giving of such Acceptance Notice. At such completion the transferor shall deliver the Sale Shares free and clear of any liens, claims, options, charges, encumbrances and third party rights howsoever arising. ABT shall deliver, at closing, payment due from it in full in immediately available funds for the Sale Shares. Each of the parties shall use its reasonable endeavours to take or procure the taking of all such actions and to execute or procure the execution of such additional documents as are otherwise necessary or appropriate in connection therewith. 12.5 (i) In the event that the consideration for the Sale Shares to be offered by the Third Party Purchaser is other than cash, an independent valuer (who shall be an internationally recognised investment banking or accountancy firm, experienced in the valuation of companies carrying on a similar business to that of the Third Party Purchaser) shall be appointed by Inchcape to assess the cash equivalent of such non-cash consideration and if, pursuant to clause 12.4, ABT shall become bound to purchase the Sale Shares, ABT shall deliver at closing to Inchcape an amount equal to the amount of the cash equivalent so determined. (ii) Inchcape shall notify ABT within five days following the appointment of an independent valuer pursuant to clause 12.5(i) and, in the event that ABT shall object to the appointment of such independent valuer within five days of being so notified by Inchcape, either Inchcape or ABT may request the President of the Institute of Chartered Accountants in England and Wales to nominate a suitable independent valuer for the purpose of assessing the cash 15 [*] Confidential Treatment Requested. 12 equivalent of the non-cash consideration referred to in clause 12.5(i) who shall thereupon be appointed by Inchcape as aforesaid. 12.6 In the event that ABT do not exercise their pre-emption rights pursuant to clauses 12.2, 12.3 and 12.4 to acquire all (but not some only) of the Sale Shares, Inchcape shall (subject as hereinafter provided and to clause 4.2 (deferred consideration) be entitled to transfer the Sale Shares on a bona fide arm's length sale for the consideration, whether cash or non-cash consideration and other terms and, to the Third Party Purchaser if any specified in the Transfer Notice PROVIDED THAT (A) such transfer shall have been completed within a period of 180 days after the date of the Transfer Notice; and (B) if, as a result of such proposed transfer (and subject to sub-clause (D) below) Inchcape shall cease to own the entire beneficial interest in [*] or more of the issued share capital of the Company or at least [*] of the votes generally exercisable at any general meeting thereof, Inchcape shall obtain ABT's prior written consent to such transfer, such consent not to be withheld where evidence and commitments are provided to the reasonable satisfaction of ABT that the Third Party Purchaser is financially able and willing to guarantee the actual and contingent payment obligations of the Company to ABT pursuant to the License and Services Agreement; (C) if, as a result of such proposed transfer (and subject to sub-clause (D) below) Inchcape shall continue to own the entire beneficial interest in [*] or more of the issued share capital of the Company or at least [*] of the votes generally exercisable at any general meeting thereof, Inchcape shall obtain ABT's prior written consent to such transfer, such consent not to be unreasonably withheld or delayed; and (D) with respect to any proposed transfer of Shares permitted pursuant to this clause 12.6, Inchcape shall not transfer the Shares to a competitor. For the purposes of this clause 12.6 "COMPETITOR" means any entity either in or outside the Territory which provides an independent (meaning an entity not primarily concerned with the sale of products of the Group of which it is a member) Internet on-line car buying service for new and used cars at the time the Transfer Notice is served by Inchcape on ABT (the "RESTRICTED BUSINESS") (except that the definition of "competitor" shall not in any circumstances apply to a body corporate which holds not more than 10 per cent. of any class of voting shares, or securities which are convertible into securities which themselves carry voting rights, or options to acquire any class of securities which themselves carry voting rights in an entity carrying on the Restricted Business). 12.7 Without prejudice to clause 12.5, each of the parties hereby agrees that, as between themselves, all transfers provided for in this clause 12 shall be made only for consideration payable in cash (U.S. dollars and/or UK pounds sterling). 16 13 12.8 Inchcape shall be entitled at any time to transfer any of the Shares held by it to a company which is a member of its Group ("GROUP TRANSFEREE"). Any Group Transferee acquiring Shares pursuant hereto shall be deemed to enjoy the same rights and be deemed to be subject to the same obligations as Inchcape under this clause 12. Inchcape shall remain a party to this agreement and undertakes to ABT to procure the performance by such Group Transferee of such obligations as if such Group Transferee were a party to this agreement and to indemnify ABT from and against the breach by such Group Transferee of any of its deemed obligations under this agreement. Inchcape undertakes to procure that, if any such Group Transferee is to cease at any time to be a member of such Group, such Group Transferee prior to so ceasing shall have transferred all of the Shares held by it at the time in question to Inchcape or to another member of such Group pursuant to and in accordance, mutatis mutandis, with the provisions of this clause 12. 12.9 For the purposes of this clause 12, "transfer" shall include, without limitation: sale, assignment, transfer and creating or permitting to subsist any mortgage, charge, pledge or lien or other security interest or encumbrance other than a Permitted Security Interest. Inchcape shall at any time be entitled to create a Permitted Security Interest in respect of all or any of the Shares provided that it shall have given prior written notice to ABT of its intention to make such mortgage, charge or pledge prior to effecting the same, specifying the name and address of the mortgagee, chargee or pledgee and representing that such mortgagee, chargee or pledgee has agreed that the provisions of this clause 12 shall be applicable to such Shares. 13. FURTHER ASSURANCE ABT shall from time to time at its own cost, on being required to do so by Inchcape, now or at any time in the future, do or procure the doing of all such acts and/or execute or procure the execution of all such documents in a form reasonably satisfactory to Inchcape as Inchcape may reasonably request and consider necessary for giving full effect to this agreement and securing to Inchcape the full benefit of the rights, powers and remedies conferred upon Inchcape in this agreement. 14. ENTIRE AGREEMENT 14.1 For the purpose of this clause, "PRE-CONTRACTUAL STATEMENT" means a draft, agreement, undertaking, representation, warranty, promise, assurance or arrangement of any nature whatsoever, whether or not in writing, relating to the Share Purchase Documents or any of them (as defined in sub-clause 14.2) made or given by a party to any of the Share Purchase Documents or any other person at any time prior to execution of the Share Purchase Documents. 14.2 This agreement, any disclosures notified by ABT to Inchcape in writing in relation to the Company, and any other documents referred to in this agreement (the "SHARE PURCHASE DOCUMENTS") constitute the whole and only agreement between the parties relating to the sale and purchase of the Shares. 12.10 Inchcape undertakes to procure that, during such time as it controls 50% or more of the Shares, no change shall be made in the rights conferred by the Shares and no shares in the capital of the Company shall be allotted or issued without the prior written consent of ABT such consent not to be unreasonably withheld or delayed PROVIDED THAT nothing in this clause shall present an increase in the authorised share capital of the Company or the allotment and/or issue of any additional Shares to Inchcape. 17 14 14.3 Except to the extent repeated in any of the Share Purchase Documents, the Share Purchase Documents supersede and extinguish any prior Pre-contractual Statement relating thereto. 14.4 Each party acknowledges that in entering into the Share Purchase Documents or any of them on the terms set out therein, it is not relying upon any Pre-contractual Statement which is not expressly set out therein. 14.5 None of the parties shall have any right of action against any other party to this agreement arising out of or in connection with any Pre-contractual Statement (except in the case of fraud). 14.6 This agreement may only be varied in writing signed by each of the parties. 15. NOTICES 15.1 Any notice or other communication given or made under or in connection with the matters contemplated by this agreement shall be in writing (other than writing on the screen of a visual display unit or other similar device which shall not be treated as writing for the purposes of this clause). For the avoidance of doubt, faxes are permitted. 15.2 Any such notice or other communication shall be addressed as provided in sub-clause 15.3 and, if so addressed, shall be deemed to have been duly given or made as follows:- (A) if sent by personal delivery, upon delivery at the address of the relevant party; (B) if sent by first class post, four Business Days after the date of posting; and (C) if sent by facsimile, when despatched; PROVIDED THAT if, in accordance with the above provisions, any such notice or other communication would otherwise be deemed to be given or made outside Working Hours, such notice or other communication shall be deemed to be given or made at the start of Working Hours on the next Business Day. 15.3 The relevant addressee, address and facsimile number of each party for the purposes of this agreement, subject to sub-clause 15.4, are:- Name of Party Name of addressee Address Facsimile No. ------------- ----------------- ------- ------------- Inchcape F.A.O. Managing 33 Cavendish Square, 0171 546 8444 Automotive Director London, W1M 9HF Limited 18 15 autobytel.cominc. F.A.O. Chief Executive 11872 MacArthur 001949 225 Officer Boulevard 4401 Irvine and California 92612 autobytel.cominc F.A.O. Senior Resident One Canada Square, 0171 519 7070 Partner, Skadden, Canary Wharf, Arps, Slate, Meagher London E14 5DS & Flom LLP 15.4 A party may notify the other parties to this agreement of a change to its name, relevant addressee, address or facsimile number for the purposes of sub-clause 15.3 PROVIDED THAT such notification shall only be effective on:- (A) the date specified in the notification as the date on which the change is to take place; or (B) if no date is specified or the date specified is less than five clear Business Days after the date on which notice is given, the date falling five clear Business Days after notice of any such change has been given. 15.5 The provisions of this clause 15 (Notices) shall not apply in relation to the service of Service Documents. 16. ANNOUNCEMENTS 16.1 Subject to sub-clause 16.2, no announcement concerning the sale of the Shares by ABT to Inchcape or any ancillary matter shall be made by either party without the prior written approval of the other, such approval not to be unreasonably withheld or delayed. 16.2 Either party may make an announcement concerning the sale of the Shares or any ancillary matter if required by:- (A) the law of any relevant jurisdiction; or (B) any securities exchange or regulatory authority or governmental body or quasi-governmental department or agency to which either party is subject, wherever situated, including (without limitation) the London Stock Exchange Limited or The Panel on Takeovers and Mergers, whether or not the requirement has the force of law, in which case the party concerned shall take all such steps as are reasonable and practicable in the circumstances to agree the contents of such announcement with the other party before making such announcement. 19 16 16.3 The restrictions contained in this clause shall continue to apply after Completion without limit in time. 17. RESTRICTIVE TRADE PRACTICES ACT 1976 If there is any provision of this agreement, or of any agreement or arrangement of which this agreement forms part, which causes or would cause this agreement or that agreement or arrangement to be subject to registration under RTPA 1976, and this agreement or that agreement or arrangement is not a non-notifiable agreement under RTPA 1976 then that provision shall not take effect until the day after particulars of this agreement or of that agreement or arrangement (as the case may be) have been furnished to the Director General of Fair Trading pursuant to section 24 RTPA 1976. 18. COSTS AND EXPENSES Except as otherwise stated in this agreement, each party shall pay its own costs and expenses in relation to the negotiations leading up to the sale of the Shares and to the preparation, execution and carrying into effect of this agreement and all other documents referred to in it and ABT confirms that no expense of whatever nature relating to the sale of the Shares has been or is to be borne by the Company. 19. COUNTERPARTS This agreement may be executed in any number of counterparts, and by the parties on separate counterparts, but shall not be effective until each party has executed at least one counterpart. Each counterpart shall constitute an original of this agreement, but all the counterparts shall together constitute but one and the same instrument. 20. TIME OF ESSENCE Except as otherwise expressly provided, time is of the essence of this agreement. 21. INVALIDITY If at any time any provision of this agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that shall not affect or impair:- (A) the legality, validity or enforceability in that jurisdiction of any other provision of this agreement; or (B) the legality, validity or enforceability under the law of any other jurisdiction of that or any other provision of this agreement. provided that the commercial affect of this agreement shall not be materially altered as a result thereof. 20 17 22. CHOICE OF GOVERNING LAW This agreement shall be governed by and construed in accordance with English law. 23. JURISDICTION The parties to this agreement irrevocably agree for the exclusive benefit of Inchcape that the courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this agreement and that accordingly any Proceedings may be brought in the English courts. Nothing contained in this clause 23 shall limit the right of Inchcape to take Proceedings against ABT in any other court of competent jurisdiction, nor shall the taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction, whether concurrently or not, to the extent permitted by the law of such other jurisdiction. 24. AGENT FOR SERVICE 24.1 ABT irrevocably appoints Skadden, Arps, Slate, Meagher & Flom LLP of One Canada Square, Canary Wharf, London E14 5DS to be its agent for the service of process in England. It agrees that any writ, summons, order, judgment or other document relating to or in connection with any Proceedings ("SERVICE DOCUMENT") may be effectively served on it in connection with Proceedings in England and Wales by service on its agent. 24.2 Any Service Document shall be deemed to have been duly served if marked for the attention of the Senior Resident Partner, Skadden, Arps, Slate, Meagher & Flom LLP at One Canada Square, Canary Wharf, London E14 5DS or such other address within England or Wales as may be notified and: (A) left at the specified address; or (B) sent to the specified address by first class post. In the case of (A), the Service Document shall be deemed to have been duly served when it is left. In the case of (B), the Service Document shall be deemed to have been duly served two clear Business Days after the date of posting. 24.3 If the agent at any time ceases for any reason to act as such, ABT shall appoint a replacement agent having an address for service in England or Wales and shall notify Inchcape of the name and address of the replacement agent. Failing such appointment and notification, the Company shall be entitled by notice to ABT to appoint a replacement agent to act on ABT's behalf. The provisions of this clause 24 applying to service on an agent apply equally to service on a replacement agent. 21 18 24.4 A copy of any Service Document served on an agent shall be sent by post to ABT. Failure or delay in so doing shall not prejudice the effectiveness of service of the Service Document. 22 19 SCHEDULE 1 (COMPLETION ARRANGEMENTS) At Completion:- 1. ABT shall deliver to Inchcape or Inchcape's Solicitors a duly executed transfer in respect of the Shares in favour of Inchcape or such person as Inchcape may nominate and share certificates for the Shares in the name of ABT (or other relevant transferor) and any power of attorney under which any transfer is executed on behalf of ABT or nominee; 2. ABT shall deliver to Inchcape (or to any person whom Inchcape may nominate) such of the following as Inchcape may require:- (A) the statutory books (which shall be written up to but not including the Completion Date), the certificate of incorporation (and any certificate of incorporation on change of name) and common seal (if any) of the Company; and (B) a copy of the minutes of a duly held meeting of the directors of ABT authorising the execution by ABT of this agreement (such copy minutes being certified as correct by an officer of ABT); 3. ABT shall procure the present directors and secretary of the Company (other than Kevin Turnbull) to resign their offices as such and to relinquish any rights which they may have under any contract of employment with the Company or under any statutory provision including any right to damages for wrongful dismissal, redundancy payment or compensation for loss of office or unfair dismissal, such resignations to be tendered at the board meetings referred to in paragraph 4; 4. ABT shall procure a board meeting of the Company to be held at which:- (A) it shall be resolved that the transfers relating to the Shares delivered pursuant hereto shall be approved for registration and (subject only to the transfers being duly stamped) Inchcape (or such person as Inchcape may nominate) be registered as the holder of the Shares concerned in the register of members; (B) each of the persons nominated by Inchcape shall be appointed directors and/or secretary, as Inchcape shall direct, such appointments to take effect on the Completion Date; (C) the resignations of the directors and secretary referred to in paragraph 3 above shall be tendered and accepted so as to take effect at the later of Completion and the close of the meeting and each of the persons tendering his resignation shall deliver to the Company an acknowledgement executed as a deed that he has no claim against the Company for breach of contract, compensation for loss of office, redundancy or unfair dismissal or on any 23 20 other account whatsoever and that no agreement or arrangement is outstanding under which the Company has or could have any obligation to him; (D) all existing instructions to banks shall continue. However, the existing bank mandates will be amended to reflect the appointment of new directors; (E) the situation of the registered office shall be changed to such address as Inchcape may nominate and (subject to the provisions of the Companies Acts) the accounting reference date shall be changed to 31st December; (F) PricewaterhouseCoopers be appointed auditors of the Company. ABT shall procure that minutes of the duly held board meeting, certified as correct by the secretary of the Company and the resignations and acknowledgements, referred to are delivered to Inchcape or Inchcape's Solicitors; Inchcape shall pay the sum of L2.00 to ABT being the total consideration payable in respect of the Shares. 24 [*] Confidential Treatment Requested. 21 SCHEDULE 2 (REPRESENTATIONS AND WARRANTIES) The Sellers represent and warrant to Inchcape as follows:- 1. OWNERSHIP OF THE SHARES ABT is the sole beneficial owner of the Shares set opposite its name in Schedule 3 (Ownership of the Shares), and such shares in aggregate constitute the entire issued and allotted share capital of the Company. 2. CAPACITY OF ABT 2.1 ABT is duly incorporated and has the requisite power and authority to enter into and perform this agreement. 2.2 This agreement constitutes binding obligations of ABT in accordance with its terms. 2.3 The execution and delivery of, and the performance by ABT of its obligations under, this agreement is within its powers, has been duly authorised by all necessary action on its part and so far as it is aware does not, and will not, violate any provision of law or any rule, regulation, order, writ, judgment, decree or other determination presently in effect applicable to it or its constitutional documents. 3. ARRANGEMENTS BETWEEN THE COMPANY AND ABT Save in respect of indebtedness of [*] referred to herein owing by the Company to ABT (to be repaid in accordance with clause 3 (Repayment of Indebtedness by the Company to ABT)), no indebtedness (actual or contingent) and no contract or arrangement other than at arm's length is outstanding between the Company and ABT or any person required to resign as a director of the Company pursuant to Schedule 1. 4. GROUP STRUCTURE, ETC. 4.1 The Shares are fully paid up. 4.2 There is no agreement or commitment outstanding with or by the Company which calls for the allotment, issue or transfer of, or accords to any person the right to call for the allotment or issue of, any shares (including the Shares) or debentures in or securities of the Company. 5. OPTIONS, MORTGAGES AND OTHER ENCUMBRANCES 5.1 There is no option, right to acquire, mortgage, charge, pledge, lien or other form of security or encumbrance or equity on, over or affecting the Shares or any of them and 25 22 there is no agreement or commitment to give or create any and no claim has been made by any person to be entitled to any. 5.2 So far as ABT is aware, no option, right to acquire, mortgage, charge, pledge, lien (other than a lien arising by operation of law in the ordinary course of trading) or other form of security or encumbrance or equity on, over or affecting the whole or any part of the undertaking or assets of the Company is outstanding and there is no agreement or commitment to give or create any and no claim has been made by any person to be entitled to any. 6. CONTRACTS AND COMMITMENTS, LIABILITIES 6.1 So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), the Company has no material liabilities (whether actual, contingent, unqualified, disputed or otherwise) including, without limitation, contracts, arrangements with, and commitments to, third parties, insurance policies and borrowings which are not disclosed by ABT in Schedule 5 (List of Commitments and Liabilities of the Company). 6.2 ABT has not entered into any agreement with the Company other than the subscription of the Shares, the memorandum and articles of association of the Company (as amended by written resolution dated 29th October 1998), the License and Services Agreement and matters concerning the indebtedness referred to in clause 3.1 and the indebtedness of the Company to Inchcape Motors International plc or Inchcape as the case may be referred to in paragraph 1.2 of Schedule 5. 7. INSOLVENCY 7.1 So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), no order has been made and no resolution has been passed for the winding up of the Company or for a provisional liquidator to be appointed in respect of the Company and no petition has been presented and no meeting has been convened for the purpose of winding up the Company. 7.2 So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), no administration order has been made and no petition for such an order has been presented in respect of the Company and no receiver (which expression shall include an administrative receiver) has been appointed in respect of the Company or all or any of its assets. 7.3 So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), no unsatisfied judgment is outstanding against the Company. 8. LITIGATION So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), the Company is not engaged in any litigation or arbitration, administrative 26 23 or criminal proceedings, whether as plaintiff, defendant or otherwise, and no litigation or arbitration, administrative or criminal proceedings by or against the Company is pending, threatened or expected and so far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), there is no fact or circumstance likely to give rise to any such litigation or arbitration, administrative or criminal proceedings or to any proceedings against any director or employee (past or present) of the Company in respect of any act or default for which the Company might be vicariously liable. 9. DELINQUENT AND WRONGFUL ACTS 9.1 So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), the Company has not committed or is liable for any criminal, illegal, unlawful or unauthorised act or breach of any obligation or duty whether imposed by or pursuant to statute, contract or otherwise. 9.2 So far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull), the Company has not received notification that any investigation or inquiry is being or has been conducted by any governmental or other body in respect of the affairs of the Company and ABT (having made no specific enquiry other than of Kevin Turnbull) is not aware of any circumstances which would give rise to such investigation or inquiry. 10. INTELLECTUAL PROPERTY The Company has applied for registration as a data user and so far as ABT is aware (having made no specific enquiry other than of Kevin Turnbull) the Company has complied with the Data Protection Principles as set out in the Data Protection Act 1984. 11. THE ACCOUNTS AND TAX The Company not realised any taxable profits other than the invoice dated 19th October 1998 from the Company to Inchcape or chargeable gains since incorporation and the Company has not engaged in any transactions or agreements with ABT or any member of the ABT Group other than those transactions and agreements referred to in Warranty 6.2 above. 27 24 SCHEDULE 3 (OWNERSHIP OF THE SHARES) Name and address of, and numbers of Shares beneficially owned by, ABT Number of Ordinary Full name Registered address Shares owned --------- ------------------ ------------ autobytel.cominc. 18872 MacArthur 2 Boulevard, Irvine, California 92612, USA Name and address of registered holder of Shares in the Company Number of Ordinary Full name Registered address Shares owned --------- ------------------ ------------ Auto-by-Tel International 18872 MacArthur 2 LLC Boulevard, Irvine, California 92612, USA 28 25 SCHEDULE 4 (BASIC INFORMATION ABOUT THE COMPANY) 1. Registered number : 03470555 2. Date of incorporation : 19th November, 1997 3. Place of incorporation : England 4. Address of registered office : One Canada Square 39th Floor London E14 5DS 5. Class of company : Private company limited by shares 6. Authorised share capital : L1,000 divided into 1000 ordinary shares of L1.00 each 7. Issued share capital : 2 ordinary shares of L1.00 each 8. Directors: Full name Usual residential address Nationality Mark Wayne Lorimer 18872 MacArthur Blvd. American Suite 200 Irvine California USA 92612 Robert Steven Grimes 152 West 57th Street American 24th Floor New York New York 10019 USA Kevin Hugh Burgoyne 9, Cedar Grange British Turnbull Harrogate N. Yorks HG2 9NY 9. Secretary: Full name Usual residential address Mark Wayne Lorimer 18872 MacArthur Blvd. American Suite 200 Irvine California USA 92612 29 26 10. Accounting reference date : 30th November 11. Tax residence : UK 12. Business activities : Electronic commerce 30 [*] Confidential Treatment Requested. 27 SCHEDULE 5 (LIST OF COMMITMENTS AND LIABILITIES OF THE COMPANY) 1. Indebtedness of the Company 1.1 The Company has an interest-free loan, repayable on demand from ABT in the amount of [*] to be repaid in accordance with clause 3.1. 1.2 The Company has an interest-free loan, repayable on demand from Inchcape Motors International plc in the amount of [*] and an interest-free loan from Inchcape Motors International plc in the amount of [*] (as at 31st October, 1998) relating to payroll and other expenses for K. Turnbull and S. Butler who are at present on the payroll of Inchcape Motors International plc. On Completion, both such debts will be assigned by Inchcape Motors International plc to Inchcape Automotive Limited. 2. Assets The following assets were purchased and acquired by Inchcape Motors International p1c. The costs of the following assets will be reimbursed to Inchcape Motors International plc on or after Completion. ITEM OF HARDWARE QUANTITY PRICE EACH(L) VALUE(L) ---------------- -------- ------------- -------- Deskpro EP6266X with 5 [*] [*] monitor, keyboard, modem, multimedia 32mb 5dram Satellite Pro 480CDT with 5 [*] [*] modem, 32mb HP 670C Deskjet 8 [*] [*] Laserjet 6NP 1 [*] [*] Laserjet 3100 1 [*] [*] Tecra 780DVD with modem 3 and E link card [*] [*] Infocus 420 PC Projector 2 [*] [*] HP Scanjet 5100C 1 [*] [*] HP Deskjet 720C 1 [*] [*] 2 laptops from Inchcape 2 [*] [*] Kevin Turnbull Keyboard 1 [*] [*] Monitor 1 [*] [*] 31 [*] Confidential Treatment Requested. 28 Card Station 1 [*] [*] Printer Switch 2 [*] [*] Mouse 6 [*] [*] SUB-TOTAL [*] ========== Brought forward total [*] ========== Software/Other items Quantity Price each(L) Value(L) - -------------------- -------- ------------- -------- MS Office Standard 14 [*] [*] MS Access 1 [*] [*] MS Project 1 [*] [*] Corel Draw 1 [*] [*] MS Schedule 1 [*] [*] Configuration of PC's 1 [*] [*] Modem Cards 7 [*] [*] Extra 32mb RAM 5 [*] [*] Network Cards 5 [*] [*] Cables and sundry equipment [*] Sub-total [*] ========== TOTAL [*] ========== 3. Summary of Employees' Contracts Date of Date of offer acceptance Starting date Summary of employment Name of of of for terms including annual Employee employment employment employment Position salary & bonus - ------------ ------------- ------------ -------------- ---------- ---------------------------- 1. Kevin 13th January, N/A 15th January, Chief [*] plus bonus in the Turnbull 1998 1998 Executive two calendar years (i.e. 1998 and 1999) of up to 40% of base salary; in third to fifth calendar years of 32 [*] Confidential Treatment Requested 29 - --------------------------------------------------------------------------------------------------------------------- Date of offer Date of Starting date Summary of employment Name of of acceptance for terms including annual Employee employment of employment employment Position salary & bonus - --------------------------------------------------------------------------------------------------------------------- employment, a profit share of 5% of profit before tax capped at [*] per annum. Pension contribution is 15% of base salary per annum; two company cars. Employment contract is terminable on six months' notice. Salary is currently being paid by Inchcape Motors International plc. - --------------------------------------------------------------------------------------------------------------------- 2. Suzanne 19th March, 23rd March, 24th March, Manager, PR [*] plus bonus of Butler 1998 1998 1998 & Events of up to 20% of base salary; company car. Salary is currently being paid by Inchcape Motors International plc. - --------------------------------------------------------------------------------------------------------------------- 3. Nicola 29th 30th 26th October, Operations/ [*]. No pension Young September, September, 1998 Customer benefits. 1998 1998 service - --------------------------------------------------------------------------------------------------------------------- 4. Jordanna 10th May, 12th May, 18th May, Regional [*] plus bonus of up Goswell 1998 1998 1998 Training to 20% of base salary; Manager company car. - --------------------------------------------------------------------------------------------------------------------- 5. Jonathan 17th May, 10th July, Operations [*] plus bonus of Beveridge 1998 1998 Director up to L25,000. During first year of employment, L10,000 of the potential bonus payment is guaranteed; pension contribution is 10% of base salary per annum; company car. Employment contract is terminable on six months' notice. - --------------------------------------------------------------------------------------------------------------------- 33 [*] Confidential Treatment Requested 30 Name of Date of offer Date of Starting date Position Summary of employment Employee of acceptance for terms including annual employment of employment salary & bonus employment 6. Alan 17th May, 18th May, 18th May, Regional [*] plus bonus of up to Crane 1998 1998 1998 Sales 20% of base salary; Manager company car 7. Derek 28th May, 28th May, 1st July, Regional [*] plus bonus of up to Mars 1998 1998 1998 Training 20% of base salary; Manager company car 8. Marianne 10th June, 20th June, 29th June, Call Centre [*] plus bonus of Kilsby 1998 1998 1998 Manager Pound 3,000 based on agreed achievement objectives 9. Nigel 16th June, -- -- Regional [*] plus bonus of up to White 1998 Sales 20% of base salary; Manager company car 10. Roger 24th June, 4th July, 17th August, Financial [*] plus bonus of up to Keith 1998 1998 1998 Controller 20% of base salary; 11. Peter 30th June, 2nd July, 6th July, Regional [*] plus bonus of up to Bradshaw 1998 1998 1998 Sales 20% of base salary; Manager company car 12. Nick 3rd July, 6th July, 3rd August, Regional [*] plus bonus of up to Deacon 1998 1998 1998 Sales 20% of base salary; pension Manager contribution of 5% of base salary; company car 13. Paul 7th July, -- -- Business [*] plus bonus of up to Donaldson 1998 Development 20% of base salary; Manager company car 14. Roger 20th August, 24th August, 21st September, Regional [*] plus bonus of up to Haymer 1998 1998 1998 Training 20% of base salary; pension Manager contribution of 5% of base salary per annum; company car 34 [*] Confidential Treatment Requested. 31 Name of Date of offer Date of Starting date Position Summary of employment Employee of acceptance for terms including annual employment of employment salary & bonus employment 15. Jonathan 4th 7th 12th October, IT Manager [*] plus bonus of up to Matthews September, September, 1998 20% of base salary; pension 1998 1998 contribution of 5% of base salary; company car allowance of L4,000 per annum. 16. Dharmesh 30th October, 2nd 1st Database [*] plus bonus of up to Chudasama 1998 November, December, Administrator 20% of base salary; pension 1998 1998 contribution of 5% of base salary. Unless otherwise stipulated above, all employment contracts are terminable by either party on one month's notice in writing. Unless otherwise stipulated, the above employment contracts provide for pension contributions on terms to be agreed as and when the pension scheme is established. There will be a period of service requirement before employees will be eligible to join the proposed scheme. 4. PAYE/National Insurance All liabilities in respect of PAYE and National Insurance contributions in respect of all employees of the Company (other than Kevin Turnbull and Suzanne Butler who are on the payroll of Inchcape Motors International p1c as at the date of this agreement) have been fully-paid and no liabilities in respect of PAYE and National Insurance are outstanding as at the date of this agreement. 5. List of motor dealers visited and details of commitments (if any) made Document 5A shows the list of motor dealers who have been visited by the Company. Those dealers who are highlighted have made a verbal commitment to the Company to operate the ABT service and to reserve the appropriate postcode territory for the supply of new car sales. One dealer, Elt Brothers (AC) in the Birmingham postal district has written to the Company agreeing to operate the ABT service. However, the terms on which Elt Brothers (AC) would be involved are contingent upon a formal dealer agreement being signed. No dealer has yet entered into a legally binding contract with the Company. 6. Direct Marketing programme A direct marketing campaign has been commenced in-house by the Company which targets the top car dealer groups and resulted in up to 200 direct mail pieces being 35 [*] Confidential Treatment Requested. 32 sent out. The mailing comprised a letter, corporate brochure and one colour advert of the Company. Each of the mailing pieces cost L0.40. This direct marketing campaign commenced at the beginning of September 1998 and continued through October 1998. This campaign will be extended through the November/December 1998 period to the next volume tier of car dealer groups. Up to 2,500 direct mail pieces will be sent out during this period. 7. Public relations cost The Company has employed the services of a public relations agency, Quadrangle Communications Limited who receive a monthly retainer of [*] excluding VAT. A spreadsheet for the trade launch campaign is attached as Document 5B. 8. Information providers; Finance & Insurance Companies The Company has contacted CAP (emap National Publications Limited), Glass's Guides (Glass's Information Services Limited), JATO (Jato Dynamics Limited) and the BBC (British Broadcasting Corporation) with a view to such companies and corporation becoming involved in the capacity of information providers to the Company to support the information content on the Company's website. No formal agreement has been entered into with any of the parties. The Company is currently in discussions with certain finance and insurance companies who could supply services for the Company's website: GE Capital AFS, Capital Bank, Alliance & Leicester Bank, Citibank, General Accident, Eagle Star and London & General Holdings. As at the date of this agreement, no formal agreement has been entered into with any of these finance and insurance companies. 9. Manufacturers visited A large number of car manufacturers have been visited by the Company but there are no contractual agreements sought or entered into between the Company and any such car manufacturers. 10. Bank Account Details The Company has one current account and one premium account with [*]. There is one standing order on the Company's Current Account whereby [*] In addition, the Company has issued Kevin Turnbull with a company credit card (Barclaycard DD no. 706602066). The average monthly bill on this credit card is [*] including VAT. Otherwise, there are no direct debit or standing order arrangements in relation to either of the Company's accounts. 36 [*] Confidential Treatment Requested. 33 As at 23rd November, 1998, the cash ledger amount on the Current Account was [*]. As at 23rd November, 1998, the cash ledger amount on the Business Premium Account was [*]. 11. Data Protection Act The Company applied for registration under the Data Protection Act 1984 in the last week of August 1998 and has been granted a temporary registration number PX 3892703. 12. Premises The Company has an outstanding liability of two months' rent for the months of November and December 1998 to Regus UK Limited in the amount of [*]. 37 34 IN WITNESS WHEREOF this agreement has been executed and delivered as a deed on the day and year first before written: Executed as a deed by /s/ MARK WAYNE LORIMER autobytel.cominc. acting by --------------------------------------- Mark Wayne Lorimer Executed as a deed by INCHCAPE AUTOMOTIVE LIMITED --------------------------------------- Director --------------------------------------- Director/Secretary 38 34 IN WITNESS WHEREOF this agreement has been executed and delivered as a deed on the day and year first before written: Executed as a deed by autobytel.cominc. acting by --------------------------------------- Mark Wayne Lorimer Executed as a deed by INCHCAPE [SIG] AUTOMOTIVE LIMITED --------------------------------------- Director /s/ R.C. WILLIAMS --------------------------------------- Director 39 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 1 40 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 2 41 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 3 42 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 1 43 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 2 44 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 3 45 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD [*] 4 46 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD ------------------ [*] 47 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LTD ------------------ [*] 4 48 AUTO-BY-TEL UK LIMITED - LAUNCH ACTIVITIES PRE-LAUNCH ACTIVITY: 18th/19th MAY - AUTO BUSINESS CONVENTION organised by Automotive Management - KT to speak on the panel: 'Dawn of the digital dealer' - ABT stand 6m by 2m, theme: 'car selling paradise' - ABT held one-to-one press briefings 17th SEPTEMBER - NON-STOP SHOPPING conference - KT to speak on a panel: 'Home Shopping & Influence of Internet, Digital TV' 23rd SEPTEMBER - CONGRESS 98, Automotive Management one day conference - ABT have a stand 3m by 2m, 'car selling paradise' set to be used 20th OCTOBER - MOTORTRADER ONE DAY CONFERENCE - US ABT Dealer, Thomas Vann, to be on the speaking panel 21st OCTOBER - INCHCAPE CONFERENCE. KT to be present with the ABT stand 27th JANUARY - USED CARS 99 conference - KT to speak: 'How is the internet being exploited and used?' DEALER RECRUITMENT CAMPAIGN: - --------------------------- Phase 1: Completed: one page adverts in MotorTrader and Automotive Management on 29th June. Phase 2: (i) Adverts published are as follows: . MOTOR INDUSTRY MANAGEMENT - back page advert for September issue . MOTORTRADER - one page advert in the 24th August publication (page 7) . AUTOMOTIVE MANAGEMENT - back page advert, 'Technology Made Easy' supplement, published 7th September (ii) INSERT in Automotive Management on the 5th Oct and MotorTrader insert on 19th Oct. (ii) A YEARS LIST RENTAL from MotorTrader of 3,000 UK: MDs, GMs, DPs, Chairman & Owners. (iii) TELEMARKETING CAMPAIGN - being done by Jon Costin who joined on 28th Sept for 5 weeks. (iv) DIRECT MARKETING CAMPAIGN = '123' campaign commences 24/08/98 and is successfully targeting the 123 groups after the top 40 that we had not previously spoken to. (v) MOTOR SHOW MEETING, 21st October, at the Stakis Metropole Hotel, Birmingham in the Norfolk Suite. The event was SMMT approved and commenced at 9am with hourly presentations by ABT and Thomas Vann (US Dealer), with the opportunity to view the website, light food and beverage available throughout the day. There were senior representatives from a large number of the top 40 Dealer Groups and the event which finished at 5:30 p.m. AUTO-BY-TEL LAUNCH PROGRAMME TIMING ----------------------------------- JANUARY/FEBRUARY - US PRESS TRIP (NON-TRADE) - -------------------------------------------- The format will be to take 3 or 4 key journalists out to Irvine. Each journalist selected will specialise in a different consumer area and therefore will receive an exclusive story - eg. an IT angle, the business success/profile angle, a car focus, etc. MARCH - DEALER LAUNCH EVENT/BUSINESS MEETING - -------------------------------------------- FORMAT: 1. To involve all the dealers/groups signed up to the service 2. To be held in London (venue & timing to be decided) 3. Purpose to the event: - To introduce the new UK site prior to the launch - To inform dealers about the partners we have: eg. Glass's, CAP, F&I, etc. - To outline the advertising about to commence (sneak preview of ads perhaps) - Information on the internet service provider deals/partnerships we have struck - Motivate dealers and gain their enthusiasm and involvement in ABT MARCH - PRESS CONFERENCE/LAUNCH TO JOURNALISTS - ---------------------------------------------- FORMAT: 1. To be held in London (venue & timing to be decided) 2. Purpose: - To gain maximum coverage of the ABT launch in all media - trade & consumer - press, radio, TV, magazines 3. To be invited: key consumer & Trade journalists from IT, Car, Business, Women's, Men's and lifestyle magazines and press APRIL (TO BE CONFIRMED) 1999 - ABT "LAUNCH" ------------------------------------------- START OF MEDIA/ADVERTISING CAMPAIGN ----------------------------------- 49 [*] Confidential Treatment Requested. DEALER RECRUITMENT CAMPAIGN [*] 50 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LIMITED MONTHLY FINANCIAL STATEMENTS (POUNDS STERLING) [*] 1 51 [*] Confidential Treatment Requested. AUTO-BY-TEL UK LIMITED BALANCE SHEETS AT MONTH-END (POUND'S) [*] 2