Heritage Auto Center, Inc. - Page 7

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          Wright.  They held a meeting.  At that meeting, and pursuant to a           
          plan between Mr. Richardson and Mr. Blewett, Mr. Blewett stated             
          to Mr. Wright that he would not participate in any deal in which            
          the amount paid over the fair market value of the tangible assets           
          was more than $1,250,000.  After Mr. Wright refused that offer,             
          Mr. Blewett left the meeting.  Mr. Richardson and Mr. Wright                
          continued negotiating.  About 30 minutes after Mr. Blewett left             
          the meeting, Mr. Richardson emerged from the meeting stating that           
          he had made a deal with Mr. Wright for $1,350,000 over the amount           
          to be paid for tangible assets of the Totem Lake dealerships.               
               After reaching the aforementioned agreement, Mr. Wright and            
          his counsel, Jerome Carpenter (Mr. Carpenter), met with the                 
          buyers, and their counsel, Mr. Hyde, to discuss the details of              
          the agreement.  At this meeting, the details of the agreement               
          between Mr. Richardson and Mr. Wright were made known to the                
          others, and the attorneys were instructed to draft the                      
          appropriate agreements for signature.  Mr. Carpenter's notes from           
          the meeting contain the entry "$1,350,000 Blue or Covenant Not to           
          Compete".  The parties have stipulated that Mr. Carpenter was               
          using the term "Blue" as a short hand expression for "goodwill".            
          Mr. Hyde's notes contain the notation "$1,350 K blue sky covenant           
          and goodwill".                                                              
               On March 4, 1988, the buyers entered into an agreement to              
          purchase the enumerated assets of the two Washington corporations           
          owned by Mr. Wright.  The agreement was titled "Purchase                    




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