Document:

2015_Ford_ABG_ProgramRedactedfor8-K-withAttachments

Confidential       

	
		
	North American Fleet, Lease
& Remarketing Operations

	16800 Executive Plaza Dr. 
Regent Court Bldg., 6N-1A
Dearborn, MI 48126

	 
	September 15, 2014

To:  Mike Schmidt, Senior Vice President – Fleet Services
       Avis Budget Car Rental, LLC  

 Subject: Avis Budget Car Rental 2015 Model Year Program Letter

This Avis Budget Car Rental, LLC 2015 Model Year Program Letter (the "Program Letter") will confirm the agreement reached between Avis Budget Car Rental, LLC ("ABCR"), its affiliates and all entities it controls and Ford Motor Company ("Ford"), (the "Parties"), regarding purchases by ABCR of Ford vehicles, which include any new and unused passenger cars, vans or trucks bearing the marks "Ford" or "Lincoln" as from time to time are offered for sale by Ford in the United States to Ford Dealers ("Ford Vehicles") for the 2015 Program Year.  "Program Year" ("PY") is defined and outlined on Attachment VII “Volume Adjustments” and runs through June 30, 2015.  The 2015 PY is comprised of 2014, 2015 and 2016 model year vehicles, beginning with the 2014 model year Mustang Coupe on March 12, 2014.  The PY includes all Ford Vehicles purchased by ABCR during the dates specified on Attachment VII “Volume Adjustments” unless both parties mutually agree to conclude the PY sooner.  Exceptions to the PY are summarized in Attachment VII "Volume Adjustments" attached hereto and incorporated herein.  The Parties agree that each month during the PY, ABCR shall prepare and submit to Ford during the 3rd week of the month, an updated requested production plan by week and by month, outlining production for the entire PY.  

Other than those items specifically identified in this Program Letter, all terms and conditions announced in related communications from Ford to ABCR, Ford's 2015 Model Daily Rental Repurchase Program and Ford's 2015 Model Daily Rental Long Term Risk Program, (the "Program Communications") control.  Terms used in this letter that are defined in such Program Communications shall have the meaning set forth in the Program Communications unless a contrary definition is provided in this Program Letter in which case the definition in this Program Letter shall prevail.  “Ford Dealer” is defined as an independent entity in the United States authorized by Ford to sell new Ford Vehicles under one or more dealer sales and service agreements.

The Parties hereto acknowledge and agree that this Program Letter, and the Program Communications relating to the acquisition by ABCR or its affiliates from Ford, and the repurchase by Ford, of Ford Vehicles, shall constitute a single contract among the Parties for all purposes, including in the event of a bankruptcy filing by any of the Parties.

This Program Letter and all of the enhancements apply to the 2015 Program Year as defined herein.  The terms and conditions contained in this Program letter are offered to meet competitive offers and promote the selection of Ford and Lincoln products.  This Program Letter contains the entire agreement between Ford and ABCR with respect to the subject matter hereof and supersedes any prior agreements and understanding, written or oral.  This Program Letter may only be changed by writing signed and delivered by the duly authorized representatives of ABCR and Ford.

Like Kind Exchange Notification
Ford is hereby notified that (ABCR) and its subsidiaries, AESOP Leasing L.P. (“AESOP Leasing”), Avis Rent A Car System, LLC (“Avis”) and Budget Rent A Car System, Inc. (“Budget”), have engaged AESOP Exchange Corporation as a qualified intermediary (“QI”) for the purpose of facilitating a like kind exchange program under Section 1031 of the Internal Revenue Code of 1986, as amended.  As such, ABCR, AESOP Leasing, Avis and Budget have assigned to AESOP Exchange Corporation, acting in its capacity as QI, all of their rights, but not their obligations, in any existing manufacturer purchase agreements they may have with Ford for the purchase of replacement Vehicles and/or the repurchase of relinquished Vehicles.  This notification will apply to all future purchases of replacement Vehicles and/or the repurchases of relinquished Vehicles unless specifically excluded in writing.

Confidential         Page 2 of 6  
15 ABCR / Ford Program

Purchase Volume 
During the 2015 Program Year, ABCR agrees to purchase for use in or in support of operations at ABCR locations a Minimum Annual Volume of [*REDACTED*] Ford Vehicles from the Ford Dealers of their choice in the United States ("Minimum Annual Volume") in the mix outlined on Attachment I “Program Volume” attached hereto and incorporated herein.   ABCR agrees to order for production [*REDACTED*] of the [*REDACTED*] Ford Vehicles for production prior to December 15, 2014.  In recognition of this volume commitment, Ford agrees to provide ABCR with enhancements to the announced risk, repurchase and GAV programs as set forth herein.

In consideration of the obligations undertaken by ABCR, Ford shall cooperate with Ford Dealers with whom ABCR negotiates the purchase of Ford Vehicles (consistent with the sales and service agreements between Ford and Ford Dealers) to make reasonable allocations of Ford Vehicles available for resale to ABCR.  ABCR understands and agrees that production loss attributable to (a) shortage or curtailment of material, labor, transportation, or utility service; (b) any labor or production difficulty; (c) any governmental action; and/or (d) any cause beyond the reasonable control of Ford may affect vehicle volumes and may result in lower volume deliveries and/or delays in deliveries.  In any such event(s), Ford shall notify ABCR in a timely fashion and, if applicable, shall provide ABCR with an estimate as to the times(s) of any delays in such deliveries.   

Ford will use commercially reasonable efforts to achieve the mix outlined in Attachment Attachment I “Program Volume” attached hereto and incorporated herein, and ABCR recognizes that the mix could change and that any such changes to the mix shall be changes determined necessary by Ford to accommodate changes to the Ford Vehicle production plans.  ABCR acknowledges and agrees that it is possible that future demand for Ford Vehicles for retail sales in the United States could be at levels that may limit the allocation of such Vehicles available to fleet buyers such as ABCR.  In the event Ford is unable to deliver the Minimum Annual Volume and to the extent such shortfall/delay is not due to causes beyond Ford's reasonable control as set forth above, Ford agrees to work with ABCR to find a commercially reasonable solution. 

Risk Program 
ABCR agrees that of the [*REDACTED*] Ford Vehicles it purchases during the 2015 Acquisition Year, [*REDACTED*] shall be purchased as Ford Risk Vehicles, as outlined on Attachment I “Program Volume”.  Vehicle mix and incentives are outlined on Attachment I “Program Volume” and on Attachment II "Risk Incentives” attached hereto and incorporated herein.  Both Parties agree the 2015 MY and 2016 MY planned Risk volumes are subject to incentive agreement.  If the Parties are unable to agree on incentives, the vehicles will become subject to the GAV Program.  

All Risk Vehicles must be ordered with Fleet Identification Number ("FIN") and option code 56K.  Risk Vehicle incentive payments will be made monthly through the automated competitive allowance payment system.  All Risk Vehicles [*REDACTED*] with the exception of any equipment changes or reconfigurations that affect the price.  

The 2015 MY Risk Fiesta, Fusion, Taurus, Explorer, MKC, and  Super Duty vehicles ordered prior to July 1, 2014 will be paid agreed upon incentives through the 2014 PY automated competitive allowance payment system (this system uses a June 30 cutoff date for vehicles designated as early introduction vehicles).  Vehicles ordered prior to July 1, 2014 that are part of the 15 PY, are set forth on Attachment VII "Volume Adjustments" attached hereto and incorporated herein.  

Guaranteed Auction Value ("GAV") Program Description
Ford and ABCR agree that the terms and conditions of the GAV Program shall be the same as the terms and conditions set forth in the 2015 Model Daily Rental Repurchase Program as amended by this Program Letter, except as follows: 

a.    All references to "Repurchase" or "Repurchase Program" shall be deleted and replaced by "Guaranteed Auction Value," "GAV" or "Guaranteed Auction Value Program."  The terms "Guaranteed Auction Value" and "GAV" shall have the same meaning and shall be used interchangeably.  

Confidential         Page 3 of 6  
15 ABCR / Ford Program

b.    The GAV shall be equal to the Repurchase Settlement Amount as defined in the Repurchase Programs and will be paid to ABCR in two separate transactions:  (1) the first payment will consist of Net Auction Proceeds and be paid by the Ford Sponsored Auction to ABCR as directed by ABCR; and (2) the second payment will consist of a GAV Supplement Amount ("GAVSA") to be paid by Ford on the Wednesday of the week following the sale of vehicles at the Ford Sponsored Auction.  The GAVSA shall be determined by calculating the GAV, deducting net auction proceeds and adding the interest reimbursement amount set forth below.

c.    To reimburse ABCR for [*REDACTED*] held for sale at Ford Sponsored Auctions more than [*REDACTED*] from Acceptance Date, [*REDACTED*] will be included in the GAVSA as follows:

		
	•
	[*REDACTED*] Days    [*REDACTED*]

		
	•
	[*REDACTED*] Days    [*REDACTED*]

		
	•
	[*REDACTED*] Days    [*REDACTED*]

d.Title to GAV vehicles will remain in the name of ABCR until the auction sale date at which time ABCR will transfer title, or cause title to be transferred, to the purchasing dealer.

e.On the [*REDACTED*] day after the Acceptance Date, vehicles not sold at a Ford Sponsored Auction will be repurchased by Ford and Ford will pay ABCR the Repurchase Settlement Amount set forth in the applicable Ford Repurchase Program for such model year.  In addition to the Repurchase Settlement Amount, Ford will also [*REDACTED*] set forth herein. 

f.Notwithstanding anything to the contrary in the Program Communications, as of the date of this Program Letter, Ford shall be under no obligation to repurchase vehicles except as set forth herein.  

g.Except as specifically amended herein, all other terms and conditions in the 2015 Model Daily Rental Repurchase Program remain in effect.  

GAV Program
ABCR agrees that of the [*REDACTED*] Ford Vehicles it purchases during the 2015 Program Year, [*REDACTED*] shall be subject to the Ford GAV Program, as outlined on Attachment I “Program Volume” attached hereto and incorporated herein.  

As part of the ABCR GAV Program, Ford agrees to enhance the 2015 Model Repurchase Program with the following items described below.  The ABCR Guaranteed Auction Value Program details are outlined on Attachment IV "GAV Program Detail” and Attachment V "GAV Depreciation Rates" attached hereto and incorporated herein.

		
	•
	[*REDACTED*]

		
	•
	ABCR GAV volume will be ordered as 100% Days-In-Service Program 56Z (less any Hawaii Vehicles 56G). 

		
	•
	[*REDACTED*] 2014 MY GAV vehicles ordered as part of the 2015 Program have defined depreciation rates,  Non Return Allowance, and payments that vary from 2015 models.  These terms are outlined on Attachment V "GAV Depreciation Rates / Additional RIPS” attached hereto and incorporated herein. Non-Return Allowances are set forth on Attachment VI “Non-Return Allowances” attached hereto and incorporated herein. 

 
[*REDACTED*] Agreement
ABCR agrees that so long as it purchases Ford Vehicles that are subject to Ford's GAV Program and/or Ford's Repurchase Program, at Ford's request, ABCR will enter into [*REDACTED*] Agreement in which [*REDACTED*].  Each such agreement will provide that the parties will [*REDACTED*].

Confidential         Page 4 of 6  
15 ABCR / Ford Program

Days-In Service Program – Order Code 56Z (Overall Description)
		
	•
	The 2015 Days-In-Service Program details are outlined on Attachment IV "GAV Program Detail" attached hereto and incorporated herein.  Rates are outlined on Attachment V "GAV Depreciation Rates".   As detailed in the 2015 Model Daily Rental Repurchase Program (page 3), the Ford Mustang continues to be the only Ford Vehicle that has a surcharge applied to the monthly depreciation rate based on the month of vehicle acceptance.  Once vehicles are delivered, order code 56Z is not transferable to other programs.  

		
	•
	As outlined on Attachment V "GAV Depreciation Rates" attached hereto and incorporated herein, [*REDACTED*].  The [*REDACTED*] which can be claimed within [*REDACTED*].  If the [*REDACTED*], the vehicle will be [*REDACTED*] regardless of days-in-service.

 
[*REDACTED*]
		
	•
	[*REDACTED*]  

		
	•
	[*REDACTED*]

		
	•
	[*REDACTED*] are set forth on Attachment VI [*“REDACTED”*] attached hereto and incorporated herein. 

		
	•
	Any Ford vehicle tendered for sale/repurchase, and rejected for any reason, [*REDACTED*].  

		
	•
	Vehicles must be ordered as GAV with order code 56 G or 56 Z.

		
	•
	[*REDACTED*], VINs must be submitted through Ford's fleet website after January 5, 2016.

		
	•
	[*REDACTED*] must be submitted prior to the vehicle exceeding the Maximum-Out-of-Service-Date (MOSD) +180 days.

		
	•
	[*REDACTED*] submitted prior to the 15th of the month will [*REDACTED*] at the end of the month; [*REDACTED*] submitted after the 15th of the month will [*REDACTED*] at the end of the next month.

		
	•
	[*REDACTED*] that are made in error can be reversed but will be charged [*REDACTED*] per annum interest from the claim date to the repayment date.

Post Acceptance Chargeback
		
	•
	If Ford accepts a returned Ford vehicle, the vehicle will not be subject to future chargeback for undetected issues except for oil sludge and title issues.  

[*REDACTED*]
ABCR and Ford agree that the Minimum Volume represents a significant percentage of the ABCR vehicle rental fleet and that if [*REDACTED*].

Confidentiality
This Program Agreement, or any part of the contents hereof, and all records, statements and matters relating hereto including information obtained or provided, including information related to Ford’s vehicle cycle plans, future products and related activities, shall be treated as confidential and each of the parties shall take or cause to be taken the same degree of care in preventing disclosure of the Confidential Material as it does with its own confidential trade or business information, including ensuring that any employees, vendors or suppliers that obtain or have access to such Confidential Material also maintain the same level of confidentiality.  Further, except as may otherwise be required by law or by subpoena or civil investigative demand, neither party shall provide the Confidential Material, or any part thereof, to any other person or legal entity, including vendors and suppliers, without the prior written consent of the other, which consent shall not be withheld unreasonably. In disclosing the Confidential Material to any person or legal entity, the disclosing party will impose on the receiving party the same degree of confidentially and care that the parties have undertaken in the first sentence of this Section or, in the case of Confidential Material supplied to any person or governmental agency pursuant to subpoena or civil investigative demand, requirement of the Securities and Exchange Commission or similar request, the disclosing party will seek an appropriate protective order or confidential treatment, and will use its best efforts to assure that the receiving party or entity returns all copies of all the Confidential Material that shall have been furnished to it, promptly after the receiving party or entity shall have completed its required analysis or review of such Confidential Material.

Illegality of Agreement
If any provision of this Program Agreement is rendered invalid, illegal or unenforceable by enactment of a statute or a final decision by a court or governmental agency of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired.

Confidential         Page 5 of 6  
15 ABCR / Ford Program

Michigan Law
This Program Agreement shall in all respects be governed by and be construed in accordance with the laws of the State of Michigan without giving effect to the principles of conflicts of laws thereof.  Any litigation regarding this Program Agreement shall be brought only in the United States District Court in Detroit, Michigan.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any such litigation in that Court, and agree not to plead or claim that such litigation has been brought in an inconvenient forum.    Neither party shall be liable for any special, incidental, consequential or punitive damages caused by or arising out of any performance or non-performance of this Agreement.  

Failure to Perform due to Strike, etc Excused
Other than as to payment obligations, if the failure of either party to fulfill its obligations within the time periods set forth in this Agreement, arise because of circumstances such as acts of God, acts of government, floods, fires, explosions, accidents, strikes or other labor disturbances, wars, civil insurrection, sabotage, nuclear or environmental disaster or other similar circumstances wholly outside the control of the defaulting Party (collectively, “Force Majeure Event”), then such failure shall be excused hereunder for the duration of such Force Majeure Event.  In the event a Force Majeure Event continues for more than thirty calendar days, or a mutually-recognized significant reduction in air travel occurs, the parties will commence negotiations in an effort to agree on modifications to this Program Agreement permitting both parties to continue without substantial penalty. 

Counterparts
This Program Agreement may be executed in counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument.

Waivers and Extensions
The parties to this Program Agreement may waive any right, breach or default which such party has the right to waive, provided that such waiver will not be effective against the waiving party unless it is in writing, signed by such party, and specifically refers to this Agreement.  Waivers may be made in advance or after the right waived has arisen or the breach or default waived has occurred.  Any waiver may be conditional.  No waiver of any breach of any agreement or provision will be deemed a waiver of any preceding or succeeding breach thereof or of any other agreement or provision.  No waiver or extension of time for performance of any obligations or acts will be deemed a waiver or extension of the time for performance of any other obligations or acts.

Notices
Any notice, consent, approval or other communication required or permitted hereunder shall be in writing, shall be transmitted given by registered or certified United States Mail or by express mail courier service, and shall be deemed given when deposited in the mail, postage prepaid and addressed as follows:

Ford Motor Company, Regent Court Building
16800 Executive Plaza Drive
Dearborn, MI  48126
Attention: Rental Manager, Rental, Lease and Remarketing Operations

Recap of 2015 AY Attachments
Attachment I         Program Volume
Attachment II        Risk Program 2015 MY
Attachment III        Risk Program 2016 MY
Attachment IV        GAV Program Detail
Attachment V        GAV Rates
Attachment VI        [*REDACTED*]
Attachment VII        Volume Adjustments

Confidential         Page 6 of 6  
15 ABCR / Ford Program

Please concur by signing below signifying ABCR's acceptance of the 2015 Program Letter.  By executing this Annual Program Letter ABCR certifies that Ford's Fleet Program [*REDACTED*].

	
			
	 
	Sincerely, 

/s/ Susan Kizoff
Susan Kizoff, Rental Manager

	Ford Motor Company Concurrence:

/s/ Kevin Koswick
Kevin Koswick, Director
North America Fleet Lease Remarketing Operations
	

_______
Date

	Ford Motor Company Concurrence:

/s/ John Felice 
John Felice, V.P. 
U.S. Marketing Sales & Service

	

9/19/14
Date

	Agreed:
Avis Budget Car Rental, LLC 

/s/ Mike Schmidt
Mike Schmidt, Senior Vice-President – Fleet Services
	

9/30/14
Date

CONFIDENTIAL    Attachment I

	
																				
	Ford Motor Company / Avis Budget Car Rental

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	2015 PROGRAM YEAR
	 

	PROGRAM VOLUME
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	PROGRAM
	 
	RISK
	TOTAL VOLUME by MY
	 
	TOTAL                   PY VOLUME
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	Memo:
	 
	 

	 
	 
	 
	Ford
	 
	 
	 
	Ford
	 
	 
	Ford
	 
	 
	 
	Ford
	 
	 
	Cum Dec.
	 
	 

	 
	 
	 
	GAV
	 
	 
	 
	RISK
	 
	 
	Total
	 
	 
	 
	Total
	 
	 
	Delivery
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fiesta
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Focus 14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Focus 15 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	C-MAX
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fusion  14MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fusion  15 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fusion  16 MY April
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fusion Hybrid
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mustang  Coupe 14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mustang  Coupe 15 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mustang  Conv
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Taurus
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Edge
	 
	 
	 
	 
	 
	[*REDACTED*]
	 
	 
	 
	 

	Flex
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Escape
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Explorer
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Explorer 16MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Expedition 14MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Expedition 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Connect 14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Connect 15 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fseries (F150-F250)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Transit
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKZ 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	
																				
	MKZ 16MY April
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKS
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKX
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKC
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKT  Town Car
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKT
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Navigator 14MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Navigator 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Total
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Memo:  14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	15 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	16 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

CONFIDENTIAL    Attachment II

	
														
	Ford Motor Company / Avis Budget Car Rental
	 

	2015 Program Year / 2015 MY Vehicles
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Risk Program
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Incentive Components
	 

	 
	 
	Total
	 
	Series
	Option
	Rapid
	Total
	 
	Off
	 
	FIMPS
	 

	 
	15 Model Year Vehicles & Minimum Specs
	Volume
	 
	 
	Code
	Code
	Series
	Incentive
	 
	Invoice
	 
	Payment
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	FORD CAR & TRUCK
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P4B
	 
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P4E
	 
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	201A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P3F
	 
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P3K
	 
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P5B
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	POH
	997
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	POH
	99D
	202A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	POK or POD
	999
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	13B
	 
	 
	 
	 
	 
	 
	 

	 
	[*REDACTED*]
	 
	 
	P8T
	66W
	200A
	[*REDACTED*]
	 

	 
	 
	 
	 
	 
	P8C
	66W
	400A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P8E
	66W
	050A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P8E
	66W
	051A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P8U
	66W
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	P8F
	66W
	400A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	K3K
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	K4K
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	K5D, K6D
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	UOG
	997
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	U9G
	999
	200A
	 
	 
	 
	 
	 
	 

	
														
	 
	 
	 
	 
	 
	U9J
	999
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	201A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	66A
	201A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	43M
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	#
	K7F
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	#
	K8F
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	439
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	642
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	U1J
	59N, 91D
	202A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	K1H, K1J
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	[*REDACTED*]
	 
	 
	 
	59N
	 
	[*REDACTED*]
	 

	 
	 
	 
	 
	 
	 
	91D
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	W1C
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	W1E
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	F2B,X2B,W2B
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	L2G/L2J
	999
	102A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	13B
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	L9F
	 
	201A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	43W
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	J6J, J8J
	 
	102A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	
														
	 
	 
	 
	 
	J1A, J2A
	 
	102A
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	J5F
	 
	100A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	J2J, J2H
	 
	All
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	J3J, J3H
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	43M
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

CONFIDENTIAL    Attachment III

	
														
	Ford Motor Company / Avis Budget Car Rental
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	2015 Program Year / 2016 MY Vehicles
	 

	 
	 

	Risk Program
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Planned
	 
	 
	 
	 
	Incentive Components
	 

	 
	 
	Total
	 
	Series
	Option
	Rapid
	Total
	 
	Off
	 
	FIMPS
	 

	 
	16 Model Year Vehicles & Minimum Specs
	Volume
	 
	 
	Code
	Code
	Series
	Incentive
	 
	Invoice
	 
	Payment
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	FORD CAR & TRUCK
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	POH
	997
	200A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	POH
	99D
	202A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	POK or POD
	999
	300A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	13B
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	#
	K7F
	 
	300A
	 
	 
	 
	 
	 
	 

	 
	[*REDACTED*]
	 
	 
	#
	K8F
	 
	300A
	 
	 
	[*REDACTED*]
	 
	 
	 

	 
	 
	 
	 
	 
	 
	439
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	642
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	L2G/L2J
	999
	102A
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	13B
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

CONFIDENTIAL    Attachment IV

	
													
	Ford Motor Company / Avis Budget Car Rental
	 
	 

	 
	 
	 

	2015 Program Year e/
	 
	 

	GAV PROGRAM DETAIL
	 
	 

	 
	 
	 

	DAYS-IN-SERVICE PROGRAM DETAILS
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	[*REDACTED*]
	 
	[*REDACTED*]
	 
	[*REDACTED*]
	 
	[*REDACTED*]
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	In-Service & Ordering Requirements
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Months-In-Service
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Days in Service
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	GAV Order Code
	 
	 
	 
	[*REDACTED*]
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Tier Distribution (max % per Tier per VL)
	a/
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Base Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Seasonal / Lincoln Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Specialty Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Volume, Depreciation and Vehicle Lines
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Base Depreciation Rates
	 
	See Program Summary / Dep Rates
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Depreciation Return Surcharge
	b/
	Mustang Only
	 
	Mustang Only
	 
	Mustang Only
	 
	N/A
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	4th Quarter Production (Cum-Dec)
	c/
	[*REDACTED*]
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Return Restrictions
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	No Acceptance Dates
	 
	Good Friday, Memorial Day, July 4th, Labor Day, Thanksgiving Thursday & Friday, and 12-23-13 thru 1-01-14
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Max OSD 180 Day Extension
	 
	N/A
	 
	N/A
	 
	$15/day plus deprec.
	 
	$15/day plus deprec.
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Mileage
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Transit Wagon / Flex
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	
													
	 
	2
	[*REDACTED*]
	d/
	 
	 
	[*REDACTED*]
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	All Other Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Excess Mileage Penalty
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	[*REDACTED*]
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	[*REDACTED*]
	 
	Eligible (not to exceed 10% by vehicle line)
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	[*REDACTED*]
	 
	[*REDACTED*]
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	[*REDACTED*]
	 
	Maximum-Out-of-Service-Date (MOSD) + 180 days
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Turn In Standards
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Shipping Costs
	 
	N/A
	 
	N/A
	 
	N/A
	 
	$200
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Hawaii
	 
	N/A
	 
	N/A
	 
	N/A
	 
	10 days
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Deductible
	 
	$500
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	Express Sign-Off
	 
	$100
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	2
	All other Standards and Procedures
	 
	As published in the 2015  Program Year Daily Rental Repurchase Program Announcement
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	- - - -
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	a/
	Seasonal / Lincoln Vehicles:  [*REDACTED*] is exceeded vehicle will be paid [*REDACTED*].  For example once [*REDACTED*] have been returned the next vehicle turned in (regardless of age) will be charged a minimum of [*REDACTED*] months depreciation.
	 
	 

	b/
	Mustang return surcharge applies as outlined in 2015 Model Daily Rental Repurchase Program Depreciation Rates (page 2)
	 
	 
	 
	 

	c/
	4th quarter production must be prioritized for production no later than December 12, 2014
	 
	 
	 
	 
	 
	 

	d/
	[*REDACTED*]
	 
	 

	e/
	[*REDACTED*]
	 
	 

CONFIDENTIAL    Attachment V

	
																	
	Ford Motor Company / Avis Budget Car Rental

	2015 Program Year  a/   f/

	GAV DEPRECIATION RATES

	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	2015 GAV RATES [REDACTED] a/ b/
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	[*REDACTED*]
	 
	 

	 
	 
	 
	 
	 
	Mthly Depreciation Rates b/
	 
	[*REDACTED*]
	Volume
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Months In Service                MIS
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Days In Service                DIS
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Base Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	[REDACTED] by vehicle line DNE
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fiesta
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Focus 14 MY Group 1
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Focus 14 MY Group 2
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Focus
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fusion 14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fusion 15MY & 16MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Mustang Coupe
	 
	 
	 
	[*REDACTED*]
	 
	 

	 
	Escape
	 
	 
	 
	 
	 

	 
	Taurus
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Seasonal & Lincoln Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% by tier by vehicle line DNE
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Mustang Convertible
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Edge
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Flex
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Explorer 15MY & 16MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Expedition 14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Expedition
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	
																	
	 
	MKZ 15MY & 16MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	MKS
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	MKX
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Navigator 14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Navigator
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Specialty Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% by tier by vehicle line DNE
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Mustang Coupe  14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	F150 Super Crew
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	[*REDACTED*]
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Long Term Vehicles
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% by tier by vehicle line DNE
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Hybrid C-Max and Fusion
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Connect  14 MY
	 
	 
	 
	 
	 
	 
	 
	 
	#
	 
	 
	 
	 
	 
	 

	 
	Connect
	 
	 
	 
	 
	 
	 
	 
	 
	#
	 
	 
	 
	 
	 
	 

	 
	MKC
	 
	 
	 
	 
	 
	 
	 
	 
	#
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	- - - - -
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	a/ 2015 MY vehicles unless noted to include 14MY or 16MY
	 

	 
	b/ GAV vehicles are price protected to the level in effect at the date of order receipt
	 

	 
	c/ 2014 MY vehicles are part of the 2015 Program refer to order receipt dates on Att VII
	 

	 
	d/ [*REDACTED*]
	 

	 
	e/ [*REDACTED*] Mustangs will have [*REDACTED*]
	 

CONFIDENTIAL    Attachment VI

	
									
	Ford Motor Company / Avis Budget Car Rental
	 

	2015 Program Year
	 

	 
	 

	[*REDACTED*]
	 

	 
	 
	 
	 
	 
	 
	 
	 

	 
	Eligible Vehicles c/
	 
	[*REDACTED*]
	 

	 
	 
	 
	Spec A
	Model
	 
	Spec B
	Model
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fiesta
	 
	 
	 
	 
	 
	 
	 

	 
	Focus  2014 MY
	 
	 
	 
	 
	 
	 
	 

	 
	Focus
	 
	 
	 
	 
	 
	 
	 

	 
	C-Max Hybrid
	 
	 
	 
	 
	 
	 
	 

	 
	Fusion  2014 MY
	 
	 
	 
	 
	 
	 
	 

	 
	Fusion
	 
	 
	 
	 
	 
	 
	 

	 
	Fusion Hybrid
	 
	 
	 
	 
	 
	 
	 

	 
	Mustang Coupe 2014 MY
	 
	 
	 
	 
	 
	 
	 

	 
	Mustang Coupe and Convertible
	 
	 
	 
	 
	 
	 
	 

	 
	Taurus
	 
	 
	 
	 
	 
	 
	 

	 
	Edge
	 
	 
	[*REDACTED*]
	 
	 

	 
	Flex
	 
	 
	 
	 

	 
	Escape
	 
	 
	 
	 

	 
	Explorer
	 
	 
	 
	 
	 
	 
	 

	 
	Expedition & Expedition EL 2014 MY
	 
	 
	 
	 
	 
	 
	 

	 
	Expedition & Expedition EL
	 
	 
	 
	 
	 
	 
	 

	 
	Connect 2014 MY
	b/d/
	 
	 
	 
	 
	 
	 

	 
	Connect
	 
	 
	 
	 
	 
	 
	 

	 
	F-Series
	 
	 
	 
	 
	 
	 
	 

	 
	Transit -- Wagon
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	LINCOLNS
	 
	 
	 
	 
	 
	 
	 

	 
	MKZ
	 
	 
	 
	 
	 
	 
	 

	 
	MKS
	 
	 
	 
	 
	 
	 
	 

	 
	MKX
	 
	 
	 
	 
	 
	 
	 

	 
	MKC
	 
	 
	 
	 
	 
	 
	 

	 
	MKT & MKT Town Car
	 
	 
	 
	 
	 
	 
	 

	
									
	 
	Navigator & Navigator L 2014 MY
	 
	 
	 
	 
	 
	 
	 

	 
	Navigator & Navigator L
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	a/
	Vehicle must be an eligible GAV vehicle for [*REDACTED*].  If payment is made the vehicle is ineligible for future GAV return.
	 

	b/
	MOSD for claiming [*REDACTED*]:   MOSD + 180 Days
	 

	 
	[*REDACTED*] of any one vehicle line repurchase volume (Connect exception)
	 
	 
	 
	 

	 
	 
	 

	c/
	[*REDACTED*] apply to 2015 MY in the 15 PY; unless noted
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	d/
	 Connect  2014 MY does not have [*REDACTED*] 
	 

CONFIDENTIAL    2015 Program Year    Attachment VII
Avis Budget Car Rental / Ford Motor Company 
VOLUME ADJUSTMENTS

	
														
	

 
	 
	A/
	 
	B/
	ADJUSTMENTS
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Start Date
	#'s not in
	 
	1
	2
	3
	4
	5
	6
	7
	TOTAL
	Program

	FULL PROGRAM YEAR
	 
	Corporate*
	weekly rpt
	Base
	 
	 
	 
	 
	 
	 
	 
	VOLUME
	End Date

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FIESTA
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FOCUS 14MY
	C/
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FOCUS 14MY
	C/
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FOCUS 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	C-MAX
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FUSION 14MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FUSION 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	FUSION 16MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MUSTANG COUPE 14MY
	C/
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MUSTANG COUPE 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MUSTANG CONV
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	TAURUS
	 
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	 
	[*REDACTED*]
	[*REDACTED*]

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Edge
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Flex
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Escape
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Explorer
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Explorer 16MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	
														
	Expedition 14MY
	C/
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Expedition 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Connect 14 MY
	C/
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Connect 15 MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Fseries (F150-F250)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Transit
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKZ 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKZ 16MY April
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKS
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKX
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKC
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKT  Town Car
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	MKT
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Navigator 14MY
	C/
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Navigator 15MY
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Grand Total
	 
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	[*REDACTED*]
	 

	
														
	NOTES:
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	

A/    All 2015 MY vehicles can use a start date of 3/19/14 (MKC is the only vehicle line that was ordered in the 2014 Program)
	 

	

B/    Volume to add to Ford Weekly reports to equal full Program Year orders (ordered prior to 7/1/14)
	 

	

C/    2014 MY vehicles included in this Program are [*REDACTED*] and Rates may vary from 2015 -- as outlined on Att VExhibit 10.1

 

IN MAKING AN INVESTMENT DECISION, INVESTORS
MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUERS OF THE SECURITIES THAT ARE REFERRED TO HEREIN, INCLUDING THE MERITS AND RISKS
INVOLVED. THE SECURITIES OFFERED HEREBY HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.
FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF ANY OFFERING MATERIALS OR
THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

THE SECURITIES REFERRED TO HEREIN ARE SUBJECT
TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD
BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

American
dg energy inc.

 

EUROSITE
POWER INC.

 

Convertible Note Amendment Agreement

 

October 3, 2014

 

American DG Energy Inc.

EuroSite Power Inc.

45 First Avenue

Waltham, MA 02451

 

Ladies and Gentlemen:

 

1.                 
Background. The undersigned investor (the “Investor”) is the owner
of convertible notes of American DG Energy Inc. (“ADGE”) in the aggregate principal amount set forth on the
signature page. Investors executing an agreement similar to this one are referred to as the “Investors.” The
aforesaid convertible notes of ADGE are referred to herein as the “ADGE Notes.” Interest accrued and unpaid
on the ADGE Notes, together with the balance of interest payable through the next interest payment date of the ADGE Notes (“Current
Interest”), is set forth on the signature page. Interest payable on the ADGE Notes from and after the next interest payment
date thereon through the maturity date thereof (“Future Interest”) is set forth on the signature page. ADGE
is the owner of shares of the common stock of EuroSite Power Inc. (“EUSP” and such shares, the “EUSP
Shares”). 

 

ADGE has agreed to
convert the Current Interest and the Future Interest on the ADGE Notes owned by the Investors into EUSP Shares owned by ADGE at
a conversion price of $0.50 per EUSP Share.

 

ADGE has agreed to
issue to the Investors warrants to purchase EUSP Shares owned by ADGE in connection with the conversion of Current Interest, with
the number of EUSP Shares subject to such warrants being set forth on the signature page at an exercise price of $0.60 per EUSP
Share.

 

Further, the Investors
have agreed to convert the entire amount due in respect of the principal and interest on the convertible notes of EUSP (“EUSP
Notes”) owned by them into newly issued EUSP Shares, with the aggregate amount of principal and interest being converted
at a conversion price of $0.50 per EUSP Share, as set forth on the signature page. The portion of such aggregate amount being converted
that is interest consists of interest accrued through the date hereof (“Accrued Interest”) and the balance of
interest payable thereafter on the next interest payment date of the EUSP Notes (“Future Interest”).

 

    	 

    	 

    

 

2.                 
Conversion of Current and Future Interest on the ADGE Notes and Issuance of ADGE Warrants.

 

a.                  
Conversion of ADGE Notes. Each Investor hereby converts the Current Interest and the
Future Interest on the ADGE Notes owned by it into EUSP Shares owned by ADGE at a conversion price of $0.50 per EUSP Share. 

 

b.                 
Issuance of ADGE Warrants to Purchase EUSP Shares owned by ADGE. ADGE agrees to issue
warrants to purchase EUSP Shares owned by each Investor, such warrants to be in the form of Exhibit A hereto and the number
of EUSP Shares subject to such warrants being set forth on the signature page.

 

c.                  
Deliveries. As soon as practical after the execution of this agreement by all parties,
the Investor agrees to deliver to ADGE the ADGE Notes owned by it, and in replacement thereof ADGE will issue a new convertible
note for the same principal amount as the Investor’s ADGE Notes in substantially the same form but reflecting the interest
conversion. Further, upon delivery of the ADGE Notes held by the Investor, ADGE agrees to transfer to the Investor the EUSP Shares
being issued on conversion of the interest on the ADGE Notes and the aforesaid warrants.

 

3.                 
Conversion of EUSP Notes. 

 

a.                  
Conversion. Each Investor hereby converts the entire principal, Accrued Interest and
Future Interest on the EUSP Notes owned by it into newly issued EUSP Shares at a purchase price per share of $0.50. 

 

b.                 
Deliveries. As soon as practical after the execution of this agreement by all parties,
each Investor agrees to deliver to EUSP for cancellation all of the EUSP Notes owned by it. Upon delivery of the EUSP Notes held
by the Investor, EUSP agrees to issue to the Investor the EUSP Shares to be issued on the conversion of the EUSP Notes. 

 

4.                 
Representations and Warranties. 

 

a.                  
ADGE and EUSP. ADGE and EUSP hereby confirm that their respective representations, warranties and agreements in the
subscription agreement and other documents pursuant to which the original ADGE Notes and the EUSP Notes were issued continue to
be true and correct as if made on the date hereof and as if made with respect to the securities being issued pursuant hereto, except
that with respect to such representations and warranties that speak as of a particular date, no material adverse change has occurred
making such representations and warranties untrue or incorrect in any material respect as of the date hereof.

 

b.                 
The Investor. The Investor hereby confirms that its representations, warranties and agreements in the subscription
agreement and other documents pursuant to which the Investor purchased its ADGE Notes and EUSP Notes are true and correct as of
the date hereof. Without limiting the foregoing, the Investor represents and warrants that he/it is an accredited investor, as
such term is defined in the regulations under the Securities Act of 1933, as amended.

 

5.                 
Expenses. Each party hereto shall each bear its own expenses incurred in connection
with this transaction. 

 

6.                 
Miscellaneous.

 

a.                  
Notices. When any notice is required or authorized hereunder, such notice shall be
given in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent
by confirmed electronic mail if sent during normal business hours of the recipient, and if not sent during normal business hours,
then on the next business day so long as receipt is confirmed, (iii) five days after having been sent by registered or certified
mail (or regular mail if registered or certified mail is unavailable in the country of the recipient), (iv) if sent within the
U.S., one business day after deposit with a recognized overnight courier, specifying next business day delivery, with written verification
of receipt or (v) if sent from the U.S. to an address outside the U.S. or if sent from outside the U.S. to an address within the
U.S., five business days after deposit with an internationally recognized courier service specifying that delivery be made within
five business days with written verification of receipt. All notices and other communications shall be sent if sent to the Investor,
to the business address or email address of the Investor set forth on the signature page to this Agreement, as it may subsequently
change by notice from the Investor; and

 

    	2

    	 

    

 

	If to ADGE, to:	American DG Energy Inc.
	 	45 First Avenue
	 	Waltham, MA 02451
	 	Attention:  Chief Financial Officer
	 	Email: gabriel.parmese@americandg.com 
	 	 
	If to EuroSite, to:	EuroSite Power Inc.
	 	45 First Avenue
	 	Waltham, MA 02451
	 	Attention:  Chief Financial Officer
	 	Email: gabriel.parmese@americandg.com
	 	 
	With a copy to:	Sullivan & Worcester LLP
	 	One Post Office Square
	 	Boston, MA 02109
	 	Attention: Edwin L. Miller, Jr.
	 	Email: emiller@sandw.com

  

Such notices or communications
shall be effective when received. If a notice or communication to Investor is sent in the manner provided above, it is duly given,
whether or not the addressee receives it. EuroSite by notice to the Investor may designate additional or different addresses for
subsequent notices or communications.

 

b.                 
Successors and Assigns. This Agreement shall be binding upon the heirs, executors,
administrators, successors and assignees of the Investor.

 

c.                  
Choice of Law. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York and, to the extent it involves any United States federal statute or regulations, in
accordance therewith.

 

d.                 
Consent to Jurisdiction. The parties hereby consent and submit to the exclusive jurisdiction
of the state and federal courts in New York City with respect to all disputes arising in connection with this transaction.

 

e.                  
Survival of Representations. The parties agree that all of the warranties, representations,
acknowledgments, confirmations, covenants and promises made in this Agreement shall survive its execution and delivery.

 

f.                  
Counterparts. This Agreement may be executed in any number of counterparts each of
which shall be deemed an original and which, taken together, shall form one and the same agreement. Execution and delivery of this
Agreement may be evidenced by a scan/.pdf of the executed document sent by email.

 

g.                 
Integration. This Agreement is the complete and exclusive agreement between the parties
with regard to the subject matter hereof and supersedes any and all prior discussions, negotiations and memoranda related hereto.

 

    	3

    	 

    

 

h.                 
Exercise of Warrant. ADGE and EUSP agree to take any actions necessary to permit the
exercise of the Warrant upon satisfaction of the conditions of exercise set forth therein.

 

_________________

 

(Signature page immediately follows.)

 

    	4

    	 

    

 

The undersigned Investor, ADGE and EUSP
hereby execute this Convertible Note Amendment Agreement as of the date first set forth above.

 

	$510,000 interest due, 1,020,000 common shares and	 	 
	1,020,000 3-year warrants exercisable at $0.60.	 	 
	é Amount of Current Interest due, common shares to be	 	/s/ A European Investor    
	exchanged and warrants to be issued, respectively, to A	 	é A European Investor
	European Investor. ADGE Notes being converted into EUSP Shares owned by ADGE at $0.50 per share and warrants to purchase EUSP shares, exercisable at $0.60 per share	 	 
	 	 	 
	$72,000 interest due, 144,000 common shares and	 	 
	144,000 3-year warrants exercisable at $0.60.	 	 
	é Amount of Current Interest due, common shares to be	 	/s/ John Hatsopoulos
	exchanged and warrants to be issued, respectively, to	 	é John Hatsopoulos
	John Hatsopoulos. ADGE Notes being converted into EUSP Shares owned by ADGE at $0.50 per share and warrants to purchase EUSP shares, exercisable at $0.60 per share	 	 
	 	 	 
	$3,612,500 future interest due, 7,225,000 common shares	 	/s/ A European Investor    
	é Amount of Future Interest due to A European Investor	 	é A European Investor
	 on ADGE Notes being converted into EUSP Shares	 	 
	owned by ADGE at $0.50 per share and number of common shares of EUSP to be exchanged for this future interest	 	 
	 	 	 
	$510,000 future interest due, 1,020,000 common shares	 	/s/ John Hatsopoulos
	é Amount of Future Interest due to John Hatsopoulos on ADGE Notes being converted into EUSP Shares owned by ADGE at $0.50 per share and number of common shares of EUSP to be exchanged for this future interest	 	é John Hatsopoulos
	 	 	 
	$1,100,000 Convertible Note, 2,200,000 common shares	 	 
	é Value of EUSP convertible note owned by ADGE to be	 	/s/ John Hatsopoulos
	converted to common shares at a price of $0.50 and number	 	é John Hatsopoulos
	of EUSP common shares to be issued by EUSP to ADGE for	 	CEO American DG Energy
	the conversion of convertible notes held by ADGE.	 	 
	 	 	 
	$300,000 Convertible Note, 600,000 common shares	 	 
	é Value of EUSP convertible note owned by John	 	/s/ John Hatsopoulos
	Hatsopoulos to be converted to common shares at a price of $0.50 and number of EUSP common shares to be issued by EUSP to John Hatsopoulos for the conversion of convertible notes held by John Hatsopoulos.	 	é John Hatsopoulos

 

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	$300,000 Convertible Note, 600,000 common shares	 	 
	é Value of EUSP convertible note owned by A European Investor to	 	/s/ A European Investor
	be converted to common shares at a price of $0.50 and	 	é A European Investor
	number of EUSP common shares to be issued by EUSP to A European Investor for the conversion of convertible notes held by A European Investor.	 	 
	 	 	 
	AGREED:	 	AGREED:
	 	 	 
	AMERICAN DG ENERGY INC.	 	EUROSITE POWER INC.
	 	 	 
	By: /s/ John Hatsopoulos	 	By: /s/ Gabriel J. Parmese

 

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