Nums: We know very little about horizontal gene transfer. In fact, up until several years ago we thought it almost never happens. Now people find it everywhere they look. But the mechanism is still not clear.
The best example of known horizontal gene transfer is antibiotic resistance in bacteria. These genes exist on plasmids - rather small circular self-replicating pieces of DNA. The main bacterial DNA is on chromosome - large circular DNA of about 10^7 bases. The plasmids are not longer than 10^4 bases. But there is a lot of them. And they are fairly stable, so that even if bactria dies, the plasmid may stick around for quite some time. Bacteria swap plasmids with each other very often.
If we want to reproduce that we need two things: multiple strands of DNA (chromosomes, but notice that plasmids are not actually chromosomes, they are just separate pieces of DNA) and particles carrying DNA (what we call viruses now, but we need to make them more general).