Document:

ex10_1.htm

    
      

    

    Exhibit
10.1

    

     

    EXECUTION
VERSION

     

     

     

     

    LOAN
ARRANGEMENT AND REIMBURSEMENT AGREEMENT

    

    between

    

    FORD
MOTOR COMPANY

    

    

    and

    

    

    UNITED
STATES DEPARTMENT OF ENERGY

    

    dated as
of September 16, 2009

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	
              ARTICLE
      I

            	
              DEFINITIONS
      AND OTHER RULES OF CONSTRUCTION

            	 
      	
              2

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              1.1

            	 
      	
              Terms
      Generally

            	 
      	
              2

            
	
              1.2

            	 
      	
              Other
      Rules of Construction

            	 
      	
              2

            
	
              1.3

            	 
      	
              Definitions
      in Other Written Communications

            	 
      	
              3

            
	
              1.4

            	 
      	
              Conflict
      with Funding Agreements

            	 
      	
              3

            
	
              1.5

            	 
      	
              Accounting
      Terms

            	 
      	
              3

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      II

            	
              FUNDING

            	 
      	
              4

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              2.1

            	 
      	
              Loans.

            	 
      	
              4

            
	
              2.2

            	 
      	
              Loan
      Commitment Amount Reductions

            	 
      	
              4

            
	
              2.3

            	 
      	
              Mechanics
      for Requesting Advances.

            	 
      	
              5

            
	
              2.4

            	 
      	
              Mechanics
      for Funding Advances.

            	 
      	
              7

            
	
              2.5

            	 
      	
              Advance
      Requirements under the Funding Agreements

            	 
      	
              9

            
	
              2.6

            	 
      	
              No
      Approval of Work

            	 
      	
              10

            
	
              2.7

            	 
      	
              Reallocation
      of Advances

            	 
      	
              10

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      III

            	
              PAYMENTS;
      PREPAYMENTS

            	 
      	
              10

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              3.1

            	 
      	
              Place
      and Manner of Payments.

            	 
      	
              10

            
	
              3.2

            	 
      	
              Payment
      of the Facility Fee

            	 
      	
              11

            
	
              3.3

            	 
      	
              Maturity
      and Amortization.

            	 
      	
              11

            
	
              3.4

            	 
      	
              Evidence
      of Debt.

            	 
      	
              11

            
	
              3.5

            	 
      	
              Interest
      Provisions Relating to All Advances.

            	 
      	
              11

            
	
              3.6

            	 
      	
              Prepayments.

            	 
      	
              12

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      IV

            	
              REIMBURSEMENT
      OBLIGATIONS

            	 
      	
              16

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              4.1

            	 
      	
              Reimbursement
      and Other Payment Obligations.

            	 
      	
              16

            
	
              4.2

            	 
      	
              Subrogation

            	 
      	
              17

            
	
              4.3

            	 
      	
              Obligations
      Absolute.

            	 
      	
              17

            
	
              4.4

            	 
      	
              Evidence
      of Payment

            	 
      	
              21

            
	
              4.5

            	 
      	
              Payment
      of Loan Document Amounts.

            	 
      	
              21

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      V

            	
              CONDITIONS
      PRECEDENT

            	 
      	
              22

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              5.1

            	 
      	
              Conditions
      Precedent to the Principal Instrument Delivery Date

            	 
      	
              22

            
	
              5.2

            	 
      	
              Conditions
      Precedent to FFB Purchase of the Notes

            	 
      	
              27

            
	
              5.3

            	 
      	
              Advance
      Approval Conditions Precedent

            	 
      	
              27

            
	
              5.4

            	 
      	
              Conditions
      Precedent to FFB Advance

            	 
      	
              29

            
	
              5.5

            	 
      	
              Advance
      Deductions

            	 
      	
              30

            
	
              5.6

            	 
      	
              Satisfaction
      of Conditions Precedent

            	 
      	
              30

            

    

    

    
      
        
           

        

        
          i

          
            

          

        

        
           

        

      

    

    

    
      	
              ARTICLE
      VI

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE BORROWER

            	 
      	
              30

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              6.1

            	 
      	
              Financial
      Condition

            	 
      	
              31

            
	
              6.2

            	 
      	
              No
      Change

            	 
      	
              31

            
	
              6.3

            	 
      	
              Existence

            	 
      	
              31

            
	
              6.4

            	 
      	
              Power;
      Authorization; Enforceable Obligations

            	 
      	
              31

            
	
              6.5

            	 
      	
              No
      Legal Bar

            	 
      	
              31

            
	
              6.6

            	 
      	
              Litigation

            	 
      	
              32

            
	
              6.7

            	 
      	
              No
      Default

            	 
      	
              32

            
	
              6.8

            	 
      	
              Ownership
      of Property

            	 
      	
              32

            
	
              6.9

            	 
      	
              Intellectual
      Property

            	 
      	
              32

            
	
              6.10

            	 
      	
              Federal
      Regulations

            	 
      	
              32

            
	
              6.11

            	 
      	
              ERISA

            	 
      	
              32

            
	
              6.12

            	 
      	
              Investment
      Company Act

            	 
      	
              33

            
	
              6.13

            	 
      	
              Guarantors;
      Pledged Equity

            	 
      	
              33

            
	
              6.14

            	 
      	
              Security
      Documents.

            	 
      	
              33

            
	
              6.15

            	 
      	
              Environmental
      Laws

            	 
      	
              34

            
	
              6.16

            	 
      	
              OFAC
      and USA PATRIOT Act.

            	 
      	
              34

            
	
              6.17

            	 
      	
              Eligibility
      of Borrower, Projects

            	 
      	
              35

            
	
              6.18

            	 
      	
              Approvals,
      Permits and Consents

            	 
      	
              35

            
	
              6.19

            	 
      	
              Compliance
      with Laws, Program Requirements

            	 
      	
              35

            
	
              6.20

            	 
      	
              Project
      Business Plan

            	 
      	
              35

            
	
              6.21

            	 
      	
              Federal
      Funding

            	 
      	
              36

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      VII

            	
              AFFIRMATIVE
      COVENANTS

            	 
      	
              36

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              7.1

            	 
      	
              Amendments
      to Certain Agreements.

            	 
      	
              36

            
	
              7.2

            	 
      	
              Maintenance
      of Business; Existence

            	 
      	
              37

            
	
              7.3

            	 
      	
              Maintenance
      of Property; Insurance.

            	 
      	
              37

            
	
              7.4

            	 
      	
              Additional
      Collateral, Etc.

            	 
      	
              38

            
	
              7.5

            	 
      	
              Use
      of Proceeds

            	 
      	
              43

            
	
              7.6

            	 
      	
              Books,
      Records and Inspections.

            	 
      	
              43

            
	
              7.7

            	 
      	
              Approvals;
      Government Approvals

            	 
      	
              44

            
	
              7.8

            	 
      	
              Compliance
      with Program Requirements

            	 
      	
              44

            
	
              7.9

            	 
      	
              Advanced
      Technology Vehicles

            	 
      	
              44

            
	
              7.10

            	 
      	
              Davis-Bacon
      Act

            	 
      	
              44

            
	
              7.11

            	 
      	
              Investment
      Earnings

            	 
      	
              45

            
	
              7.12

            	 
      	
              Federal
      Funding

            	 
      	
              45

            
	
              7.13

            	 
      	
              Borrower
      Project Commitment

            	 
      	
              45

            

    

    

    
      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

    

    

    
      	
              ARTICLE
      VIII

            	
              INFORMATION
      COVENANTS

            	 
      	
              46

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              8.1

            	 
      	
              Financial
      Statements.

            	 
      	
              46

            
	
              8.2

            	 
      	
              Reports

            	 
      	
              47

            
	
              8.3

            	 
      	
              Notices.

            	 
      	
              49

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      IX

            	
              NEGATIVE
      COVENANTS

            	 
      	
              49

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              9.1

            	 
      	
              Borrowing
      Base

            	 
      	
              49

            
	
              9.2

            	 
      	
              Available
      Liquidity

            	 
      	
              49

            
	
              9.3

            	 
      	
              Liens.

            	 
      	
              49

            
	
              9.4

            	 
      	
              Restricted
      Group Debt

            	 
      	
              49

            
	
              9.5

            	 
      	
              Asset
      Sale Restrictions.

            	 
      	
              50

            
	
              9.6

            	 
      	
              Restricted
      Payments

            	 
      	
              53

            
	
              9.7

            	 
      	
              Fundamental
      Changes.

            	 
      	
              54

            
	
              9.8

            	 
      	
              Negative
      Pledge

            	 
      	
              55

            
	
              9.9

            	 
      	
              Sales
      and Leasebacks

            	 
      	
              56

            
	
              9.10

            	 
      	
              Use
      of Proceeds

            	 
      	
              56

            
	
              9.11

            	 
      	
              Debarment.

            	 
      	
              57

            
	
              9.12

            	 
      	
              Public
      Statements

            	 
      	
              57

            
	
              9.13

            	 
      	
              Limitation
      on Senior Obligations

            	 
      	
              57

            
	
              9.14

            	 
      	
              Noneligible
      ATVM Project Costs

            	 
      	
              58

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      X

            	
              EVENTS
      OF DEFAULT AND REMEDIES

            	 
      	
              58

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              10.1

            	 
      	
              Events
      of Default

            	 
      	
              58

            
	
              10.2

            	 
      	
              Remedies;
      Waivers.

            	 
      	
              61

            
	
              10.3

            	 
      	
              Accelerated
      Advances

            	 
      	
              63

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      XI

            	
              THE
      ATVM COLLATERAL TRUSTEE

            	 
      	
              63

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              11.1

            	 
      	
              Appointment

            	 
      	
              63

            
	
              11.2

            	 
      	
              Delegation
      of Duties

            	 
      	
              64

            
	
              11.3

            	 
      	
              Exculpatory
      Provisions

            	 
      	
              64

            
	
              11.4

            	 
      	
              Non-Reliance
      on the ATVM Collateral Trustee

            	 
      	
              64

            
	
              11.5

            	 
      	
              ATVM
      Collateral Trustee in Its Individual Capacity

            	 
      	
              65

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE
      XII

            	
              MISCELLANEOUS

            	 
      	
              65

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              12.1

            	 
      	
              Amendments,
      Etc

            	 
      	
              65

            
	
              12.2

            	 
      	
              Delay
      and Waiver

            	 
      	
              65

            
	
              12.3

            	 
      	
              Right
      of Setoff

            	 
      	
              66

            
	
              12.4

            	 
      	
              Survival
      of Representations and Warranties

            	 
      	
              66

            
	
              12.5

            	 
      	
              Notices

            	 
      	
              66

            

    

    

    
      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

    

    

    
      	
              12.6

            	 
      	
              Severability;
      Consents.

            	 
      	
              68

            
	
              12.7

            	 
      	
              Judgment
      Currency

            	 
      	
              69

            
	
              12.8

            	 
      	
              Indemnification.

            	 
      	
              69

            
	
              12.9

            	 
      	
              Limitation
      on Liability

            	 
      	
              72

            
	
              12.10

            	 
      	
              Successors
      and Assigns.

            	 
      	
              72

            
	
              12.11

            	 
      	
              Participations

            	 
      	
              73

            
	
              12.12

            	 
      	
              Further
      Assurances and Corrective Instruments

            	 
      	
              73

            
	
              12.13

            	 
      	
              Reinstatement

            	 
      	
              73

            
	
              12.14

            	 
      	
              Governing
      Law; Waiver of Jury Trial.

            	 
      	
              74

            
	
              12.15

            	 
      	
              Submission
      to Jurisdiction

            	 
      	
              74

            
	
              12.16

            	 
      	
              Entire
      Agreement

            	 
      	
              74

            
	
              12.17

            	 
      	
              Benefits
      of Agreement

            	 
      	
              74

            
	
              12.18

            	 
      	
              Headings

            	 
      	
              75

            
	
              12.19

            	 
      	
              Counterparts

            	 
      	
              75

            
	
              12.20

            	 
      	
              No
      Partnership; Etc

            	 
      	
              75

            
	
              12.21

            	 
      	
              Releases
      of Guarantees and Liens.

            	 
      	
              75

            
	
              12.22

            	 
      	
              Certain
      Waivers

            	 
      	
              77

            
	
              12.23

            	 
      	
              Independence
      of Covenants

            	 
      	
              77

            
	
              12.24

            	 
      	
              Marshaling

            	 
      	
              77

            
	
              12.25

            	 
      	
              Pro
      Rata Treatment

            	 
      	
              77

            

    

    

    

    
      	 
      	 
      	
              ANNEXES,
      SCHEDULES AND EXHIBITS

            
	 
      	 
      	 
      
	
              Annex
      A

            	 
      	
              Definitions

            
	 
      	 
      	 
      
	
              Schedule
      5.1(o)

            	 
      	
              Evidence
      of Necessary Consents, Approvals and Waivers

            
	 
      	 
      	 
      
	
              Schedule
      6.13(a)

            	 
      	
              Guarantors

            
	 
      	 
      	 
      
	
              Schedule
      6.13(b)

            	 
      	
              Pledged
      Equity & Certificated Securities

            
	 
      	 
      	 
      
	
              Schedule
      6.14(c)

            	 
      	
              Uniform
      Commercial Code Financing Statements for Existing
    Collateral

            
	 
      	 
      	 
      
	
              Schedule
      6.14(d)

            	 
      	
              Uniform
      Commercial Code Financing Statements for ATVM
Collateral

            
	 
      	 
      	 
      
	
              Schedule
      6.21

            	 
      	
              List
      of Federal Funding Applications

            
	 
      	 
      	 
      
	
              Schedule
      7.4

            	 
      	
              Pledged
      Notes

            
	 
      	 
      	 
      
	
              Schedule
      A

            	 
      	
              Mortgaged
      Property

            
	 
      	 
      	 
      
	
              Exhibit
      A

            	 
      	
              Form
      of Drawstop Notice

            

    

    

    
      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

    

    

    
      	
              Exhibit
      B

            	 
      	
              Form
      of Obligor Certificate

            
	 
      	 
      	 
      
	
              Exhibit
      C

            	 
      	
              Form
      of Borrower’s Certificate

            
	 
      	 
      	 
      
	
              Exhibit
      D

            	 
      	
              Form
      of Opinion of Davis Polk and Wardwell LLP

            
	 
      	 
      	 
      
	
              Exhibit
      E

            	 
      	
              Form
      of Opinion of Borrower’s Associate General Counsel

            
	 
      	 
      	 
      
	
              Exhibit
      F-1

            	 
      	
              Form
      of Opinion of Delaware Counsel

            
	 
      	 
      	 
      
	
              Exhibit
      F-2

            	 
      	
              Form
      of Opinion of Bermuda Counsel

            
	 
      	 
      	 
      
	
              Exhibit
      F-3

            	 
      	
              Form
      of Opinion of Mexico Counsel

            
	 
      	 
      	 
      
	
              Exhibit
      G

            	 
      	
              Form
      of Lobbying Certification

            
	 
      	 
      	 
      
	
              Exhibit
      H

            	 
      	
              Lobbying
      Disclosure Form

            
	 
      	 
      	 
      
	
              Exhibit
      I

            	 
      	
              Form
      of Collateral Release

            
	 
      	 
      	 
      
	
              Exhibit
      J

            	 
      	
              Form
      of Compliance Certificate

            
	 
      	 
      	 
      
	
              Exhibit
      K-1

            	 
      	
              Form
      of Existing Collateral Release Notice

            
	 
      	 
      	 
      
	
              Exhibit
      K-2

            	 
      	
              Form
      of ATVM Collateral Release Certificate

            
	 
      	 
      	 
      
	
              Exhibit
      L

            	 
      	
              Form
      of ATVM Collateral Security Agreement

            
	 
      	 
      	 
      
	
              Exhibit
      M

            	 
      	
              Form
      of ATVM Collateral Trust Agreement

            
	 
      	 
      	 
      
	
              Exhibit
      N

            	 
      	
              Form
      of Guarantee

            
	 
      	 
      	 
      
	
              Exhibit
      O

            	 
      	
              Form
      of Note A

            
	 
      	 
      	 
      
	
              Exhibit
      P

            	 
      	
              Form
      of Note B

            

    

    

    
      
        
           

        

        
          v

          
            

          

        

        
           

        

      

    

    

    LOAN
ARRANGEMENT AND REIMBURSEMENT AGREEMENT, dated as of September 16, 2009 (this
“Agreement”), between
the UNITED STATES DEPARTMENT OF ENERGY, an agency of the United States of
America (“DOE”), and
FORD MOTOR COMPANY (the “Borrower”), a corporation organized
under the laws of Delaware.

    

    PRELIMINARY
STATEMENTS

    

    A.         
  DOE has been authorized to arrange for FFB (as that and other
capitalized terms used herein without definition are defined in Annex A to this
Agreement) to make loans to manufacturers of advanced technology vehicles and
components pursuant to the Advanced Technology Vehicles Manufacturing Incentive
Program, as set forth in Section 136 of the Energy Independence and Security Act
of 2007.

    

    B.         
   The Borrower submitted an Application, dated November 18,
2008, which was deemed substantially complete on December 16, 2008 and was
amended and restated on June 12, 2009, for a multi-draw term loan facility to be
authorized and approved by DOE under the ATVM Program, subject to the
requirements of Section 136 and the Applicable Regulations.

    

    C.            
The Borrower and DOE entered into a Conditional Commitment Letter on June 23,
2009, pursuant to which DOE agreed to arrange for FFB to purchase Notes from the
Borrower in an aggregate amount not to exceed $5,937,000,000 and to make
Advances from time to time thereunder, in each case upon the terms and subject
to the conditions of this Agreement and the other Loan Documents.

    

    D.            Subject
to the terms and conditions hereof, DOE will, in connection with arranging
financing for the Borrower from FFB, issue and deliver to FFB the Principal
Instruments.

    

    E.         
   Pursuant to the terms of the Program Financing Agreement, DOE
will be obligated to reimburse FFB for any liabilities, losses, costs or
expenses incurred by FFB from time to time with respect to the Notes or the
related Note Purchase Agreement.

    

    F.          
  The Borrower’s obligations to DOE and FFB will be secured by the Liens
granted under the ATVM Collateral Security Documents and the Existing Collateral
Security Documents, to the extent provided therein.

    

    G.         
  The parties hereto desire (a) to specify, among other
things, the terms and conditions for (i) the delivery by DOE of the
Principal Instruments required for FFB to purchase the Notes pursuant to the
Note Purchase Agreement, (ii) the delivery by DOE of
Advance Request Approval Notices and (iii) certain indemnity and
reimbursement obligations of the Borrower to DOE and (b) to provide for certain
other matters related thereto.

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    NOW,
THEREFORE, in consideration of the promises and other agreements herein
contained, the parties hereby agree as follows:

    

    ARTICLE
I

    

    DEFINITIONS
AND OTHER RULES OF CONSTRUCTION

    

    1.1           Terms
Generally.  Capitalized terms used herein, including in the
preliminary statements, without definition shall have the respective meanings
assigned to such terms in Annex A (Definitions)
hereto.

    

    1.2           Other Rules of
Construction.  Unless the contrary is expressly stated
herein:

    

    (i)         
  words in this Agreement denoting one gender only shall be construed
to include the other gender;

    

    (ii)           when
used in this Agreement, the words “including”, “includes” and “include” shall be
deemed to be followed in each instance by the words “without
limitation”;

    

    (iii)          when
used in this Agreement, the words “herein”, “hereby”, “hereunder”, “hereof”,
“hereto”, “hereinbefore”, and “hereinafter”, and words of similar import, unless
otherwise specified, shall refer to this Agreement in its entirety and not to
any particular section, subsection, paragraph, clause or other subdivision,
exhibit, schedule or appendix of this Agreement;

    

    (iv)          each
reference in this Agreement to any article, section, subsection, paragraph,
clause or other subdivision, exhibit, schedule or appendix shall mean, unless
otherwise specified, the respective article, section, subsection, paragraph,
clause or other subdivision, exhibit, schedule or appendix of this
Agreement;

    

    (v)           capitalized
terms in this Agreement referring to any Person or party to any Transaction
Document or to any other agreement, instrument, deed or other document shall
refer to such Person or party together with its successors and permitted
assigns, and in the case of any Governmental Authority, any Person succeeding to
its functions and capacities;

    

    (vi)          each
reference in this Agreement to any Transaction Document or to any other
agreement, instrument, deed or other document, shall be deemed to be a reference
to such Transaction Document or such other agreement, instrument, deed or
document, as the case may be, as the same may be amended, supplemented, novated
or otherwise modified from time to time in accordance with the terms hereof and
thereof;

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    (vii)         each
reference in this Agreement to any Requirements of Law shall be construed as a
reference to such Requirement of Law, as the case may be, as applied, amended,
modified, extended or re-enacted from time to time, and includes any rules or
regulations promulgated thereunder;

    

    (viii)        each
reference in this Agreement to any provision of any other Transaction Document
will include reference to any definition or provision incorporated by reference
within that provision;

    

    (ix)           the
words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, Capital Stock, securities, revenues, accounts,
leasehold interests, Intellectual Property and contract rights; and

    

    (x)          
 the word “will” shall be construed as having the same meaning and effect
as the word “shall.”

    

    1.3           Definitions in Other Written
Communications.  Unless the contrary intention appears, any
capitalized term used without definition in any notice or other written
communication given under or pursuant to this Agreement shall have the same
meaning in that notice or other written communication as in this
Agreement.

    

    1.4           Conflict with Funding
Agreements.  In the case of any conflict between the terms of
this Agreement and the terms of any Funding Agreement (other than the Program
Financing Agreement), the terms of such Funding Agreement, as between the
Borrower and the Lender Parties party thereto, shall control, unless expressly
stated to the contrary herein.

    

    1.5           Accounting
Terms.  As used herein and in the other Loan Documents, and any
certificate or other document made or delivered pursuant hereto or thereto,
accounting terms not defined in Annex A and accounting terms partly defined in
Annex A, to the extent not defined, shall have the respective meanings
given to them under GAAP.

    

    
      
        
           

        

        
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    ARTICLE
II

    

    FUNDING

    

    2.1           Loans.

    

    (a)       Purchase of
Notes.  Subject to the terms and conditions hereof and of the
Funding Agreements, on the Principal Instrument Delivery Date, DOE agrees to
deliver to FFB the Principal Instruments required, in accordance with Section
4.2 of the Note Purchase Agreement, in connection with the offer to FFB to
purchase on the Financial Closing Date (i) Note A in an aggregate
maximum principal amount not to exceed $4,377,000,000 (the “A Loan”) and (ii) Note B in an aggregate
maximum principal amount not to exceed $1,560,000,000 (the “B Loan” and together with the
A Loan, the “Loans”).

    

    (b)       Advance Request Approval
Notice.  Subject to the terms and conditions hereof and of the
Funding Agreements, DOE agrees, no less than three Business Days prior to each
Advance Date during the Availability Period, to deliver to FFB an Advance
Request Approval Notice authorizing FFB to make advances of the Loans (the
“Advances”), provided that, after giving
effect to any Advances and the use of proceeds thereof,

    

    (i)        
   the aggregate amount of Advances made to the Borrower under
the Notes does not exceed the Maximum Total Loan Amount;

    

    (ii)           the
aggregate amount of Advances made to the Borrower under Note A does not exceed
$4,377,000,000 (the “Maximum
Total Loan A Amount”); and

    

    (iii)          the
aggregate amount of Advances made to the Borrower under Note B does not exceed
$1,560,000,000 (the “Maximum
Total Loan B Amount”).

    

    2.2           Loan Commitment Amount
Reductions.  The Borrower may, on not less than 30 days prior
written notice to DOE and upon the satisfaction of any consent requirement or
other applicable provisions of this Agreement and each Loan Document,
permanently reduce the Loan Commitment Amount, in whole or in part, but only
if:

    

    (a)       DOE
is satisfied that the proposed reduction or cancellation would not cause a
Default or an Event of Default;

    

    (b)       the
Borrower shall have delivered to DOE, by an Acceptable Delivery Method, a
certificate, in form and substance satisfactory to DOE, with respect to the
matters set forth in clause (a) above; and

    

    
      
        
           

        

        
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    (c)       to
the extent permitted by applicable Law, upon such cancellation or reduction, the
Borrower shall pay all expenses and other amounts then due with respect to such
cancellation or reduction under this Agreement.

    

    Once
reduced or canceled, the Loan Commitment Amount may not be
increased.

    

    2.3           Mechanics for Requesting
Advances.

    

    (a)       Advance
Requests.  From time to time during the Availability Period,
the Borrower may request Advances under the Funding Agreements by, not less than
(i) in the case of an
Advance or Advances in an amount less than or equal to $100,000,000, seven
Business Days and (ii)
in the case of an Advance or Advances in an amount greater than $100,000,000, 10
Business Days, in each case, prior to any Requested Advance Date, (A) delivering, by an
Acceptable Delivery Method, to DOE, an appropriately completed request with
respect to such Advance or Advances (each, an “Advance Request”), which
shall be substantially in the form of the document titled “Form of Advance
Request Certificate,” dated September 16, 2009 previously submitted to and
accepted by DOE (the “Form of
Advance Request”) and in compliance with the requirements of Section
2.3(b), and (B)
delivering, by an Acceptable Delivery Method, to DOE, and, by facsimile, to FFB
an appropriately completed FFB Advance Request which shall be substantially in
the form of Exhibit A to the Note Purchase Agreement (the “Form of FFB Advance
Request”).  The Borrower may request Advances no more
frequently than 12 times during any calendar year, provided that, for the 2009
calendar year, the Borrower shall be permitted to request Advances no more than
five times.

    

    (b)       Contents of Advance
Requests.  Each Advance Request shall specify or include as an
attachment each of the following:

    

    (i)          
 (A) the amount
(if any) of the Advance requested under Note A, and (B) the amount (if any) of the
Advance requested under Note B, which amount shall be equal to the sum of (i) 40% of the total
capitalizable facilities and tooling set forth under the heading “Eligible
Project Costs: Cap F&T” of Annex I of the Advance Request and (ii) a portion of the cost of
the time spent Developing the trade secrets or inventions incorporated into the
patents and patent applications Uniquely Identified in the updated Asset
Register that were not Uniquely Identified in any previous Asset Register, provided that in each of
clauses (A) and (B), such amounts shall be in the minimum amounts required by
this Agreement, the Note Purchase Agreement and the relevant Note;

    

    (ii)           the
Requested Advance Date, which, subject to the requirements of Section 2.3(a)
shall be any Business Day during the Availability Period;

    

    
      
        
           

        

        
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    (iii)          the
aggregate amount, on a prospective basis after giving effect to the requested
Advances, of (A) all Advances
outstanding under Note A (if any) and (B) all Advances outstanding
under Note B (if any);

    

    (iv)          a
duly completed Draw Request (substantially in the form of Annex I to the Form of
Advance Request);

    

    (v)           a
duly completed Collateralization Summary (substantially in the form of Annex II
to the Form of Advance Request); and

    

    (vi)          an
updated Asset Register (substantially in the form of Annex III to the Form of
Advance Request).

    

    (c)       Contents of FFB Advance
Requests.  Each FFB Advance Request shall contain all
information required by the Form of FFB Advance Request.

    

    (d)       Maximum Note Amount
Amendments.  If at any time (x) the aggregate amount
of Advances that the Borrower or DOE anticipates will be requested under Note A
or Note B, as the case may be, during the next three months would cause the
aggregate principal amount of Advances outstanding under any such Note to exceed
the Maximum Principal Amount of such Note and (y) the aggregate amount
of Advances that the Borrower or DOE anticipates will be requested during such
period under both Note A and Note B would not cause the aggregate
principal amount of the Advances outstanding under both Notes to exceed the
Maximum Total Loan Amount, either the Borrower or DOE may request that the
other, and upon such request both DOE and the Borrower shall, execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered,
and DOE shall use reasonable efforts to cause FFB to execute, acknowledge and
deliver, or cause to be executed, acknowledged and delivered, within a
reasonable period of such request, such amendments or supplements hereto, to the
relevant Notes or to any other Loan Documents, and such further instruments, and
take such further actions, as may be necessary to effectuate a reallocation of
the Maximum Total Loan Amount between the Maximum Total Loan A Amount and the
Maximum Total Loan B Amount to accommodate the amount of Advances that the
Borrower or DOE, as the case may be, anticipates will be requested under each
Note during the remaining Availability Period.  For the avoidance of
doubt, the parties agree (i) to use reasonable
efforts to anticipate the need to enter into the amendments specified in this
Section 2.3(d) to allow as much advance notice of the need for such
amendments as is practicable and to limit the number of such amendments as much
as practicable and (ii) that DOE shall be
under no obligation to deliver an Advance Request Approval Notice with respect
to any Advance Request that would cause the aggregate Advances under Note A
to exceed the Maximum Total Loan A Amount, the aggregate Advances under Note B
to exceed the Maximum Total Loan B Amount or the aggregate Advances under both
Notes to exceed the Maximum Total Loan Amount until the necessary amendments or
supplements hereto, to the relevant Notes or to any other Loan Documents have
been executed and such further instruments, or further actions, have occurred to
effectuate reallocation of the Maximum Total Loan Amount between the Maximum
Total Loan A Amount and the Maximum Total Loan B Amount that would permit the
Advances requested in such Advance Request to be made without any such amount
being exceeded.

    

    
      
        
           

        

        
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    2.4           Mechanics for Funding
Advances.

    

    (a)       Advance
Funding.

    

    (i)          
 Satisfaction of
Conditions.  Promptly after receipt of an Advance Request
complying with Sections 2.3(a) (Mechanics for Requesting
Advances) and 2.3(b), DOE shall review such Advance Request and the
attachments thereto to determine whether all certificates and documentation
required under Section 2.3 have been delivered to it.  At such
time as DOE has determined that it has received all such required certificates
and documentation, but in any event not more than, (x) in the case of any Advance
or Advances in an amount less than or equal to $100,000,000, four Business Days
and (y) in the case of
any Advance or Advances in an amount greater than $100,000,000, seven Business
Days after receipt of such Advance Request, DOE shall so notify FFB and the
Borrower; and

    

    (ii)           Advance Request Approval
Notice.  With respect to any Advance or Advances under the
Funding Agreements, if DOE determines that all conditions precedent set forth in
Section 5.3 (Advance Approval
Conditions Precedent) in respect of the requested Advance or Advances
have been satisfied (or waived in writing), then no later than three Business
Days prior to the Requested Advance Date, DOE shall issue to FFB and the
Borrower an Advance Request Approval Notice.

    

    (iii)          Funding.  For
any requested Advance for which an Advance Request Approval Notice has been
issued pursuant to this Section 2.4(a) and for which no Drawstop Notice has been
issued pursuant to Section 2.4(b), FFB shall fund such Advance on the
Requested Advance Date in accordance with the Note Purchase Agreement and the
relevant Note.  Such funds shall be applied as specified in the
Funding Agreements, provided that if any Drawstop
Notice has been issued and is in effect on the Requested Advance Date with
respect to any funds received by the Borrower, such funds shall be returned by
the Borrower to FFB pursuant to Section 2.4(b).

    

    
      
        
           

        

        
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    (b)       Drawstop
Notices.

    

    (i)            Issuance.  Following
the issuance of any Advance Request Approval Notice by DOE pursuant to
Section 2.4(a) and on or prior to the Requested Advance Date, DOE or FFB
may, from time to time, issue a notice substantially in the form attached hereto
as Exhibit A (a “Drawstop
Notice”) to the Borrower and to DOE or FFB, as the case may be, if and
only if DOE or FFB, as the case may be, determines that:

    

    (A)          the
conditions in Section 5.3 with respect to such Advance or Advances are not met,
or having been met, are no longer met; or

    

    (B)           to
the extent the Advance Request Approval Notice has been issued for any Advance
under the relevant Note and the Note Purchase Agreement, the conditions
precedent to such Advance contained in such Note and the Note Purchase Agreement
are not met, or having been met, are no longer met.

    

    (ii)           Consequences.  If
a Drawstop Notice is issued, FFB shall not be obligated to make the requested
Advance or Advances set forth on such Drawstop Notice, provided that, if FFB makes
any such Advance or Advances to the Borrower following the issuance of a
Drawstop Notice, the Borrower shall return such Advance or Advances to FFB
immediately upon receipt thereof, and provided further that, any
amount required to be returned by the Borrower pursuant to this Section
2.4(b)(ii) shall accrue interest at the Late Charge Rate from the date such
Advance or Advances are made until such Advance or Advances are
returned.  Following the return of such Advance or Advances, FFB shall
deliver an invoice to the Borrower setting forth the interest due and payable
with respect to such returned amount.  The Borrower hereby agrees
promptly, but in no event later than five Business Days following delivery of
such invoice, to pay such interest amounts as directed by FFB.

    

    (c)       No
Liability.

    

    (i)           
Neither DOE nor FFB shall have any liability to the Borrower or any Affiliate
thereof or to any other Lender Party arising from the issuance of a Drawstop
Notice or the failure to issue any Advance Request Approval Notice or any other
certificate or notice contemplated by this Section 2.4 unless (x) such Drawstop Notice has
not been withdrawn within five Business Days after receipt by DOE or FFB, as the
case may be, from the Borrower of notice that the Borrower believes that DOE or
FFB, as the case may be, was not entitled to deliver the Drawstop Notice or
(y) such failure to
issue any such Advance Request Approval Notice or any other certificate shall
continue for five Business Days after the date otherwise specified for delivery
hereunder.

    

    
      
        
           

        

        
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    (ii)           Subject
to Section 2.4(c)(i), neither DOE nor FFB shall have any liability for any
action taken (including the delivery of a Drawstop Notice) or omitted to be
taken (including the failure to fund any Advance or Advances following the
issuance of a Drawstop Notice) or for any loss or injury resulting from its
actions or its performance or lack of performance of any of its other duties
hereunder if DOE or FFB, as the case may be, acted reasonably in exercising or
interpreting its statutory authority and applicable regulations in taking any
such action, omitting to take any action or performing its duties
hereunder.  In no event shall DOE, FFB or any subsequent holder of any
Note be liable (A) for
acting in accordance with or relying upon any entitlement order, instruction,
notice, demand, certificate or document from the Obligors or any entity acting
on behalf of the Obligors, (B) for any indirect,
consequential, punitive or special damages, regardless of the form of action and
whether or not any such damages were foreseeable or contemplated, or (C) in the case of FFB or any
subsequent holder of any Note, for acting in accordance with or relying upon any
Drawstop Notice issued by DOE.

    

    (iii)          Notwithstanding
anything contained in this Agreement to the contrary, neither DOE nor FFB shall
incur any liability to the Borrower or any Affiliate thereof or to any other
Lender Party for not performing any act or fulfilling any duty, obligation or
responsibility hereunder by reason of any of the following circumstances beyond
the control of DOE, FFB or their respective agents:  any act or
provision of any present or future law or regulation of any Governmental
Authority (other than FFB or DOE, unless DOE or FFB, as the case may be, is
required pursuant to applicable law to issue regulations prohibiting it from
performing such duty or fulfilling such duty, obligation or responsibility), any
act of God, fire, flood, severe weather, epidemic, quarantine restriction,
explosion, sabotage, act of war, act of terrorism, riot, civil commotion, lapse
of the statutory authority of the United States Department of the Treasury to
raise cash through the issuance of Treasury debt instruments, disruption or
failure of the Treasury Financial Communications System, closure of the Federal
Government, or unforeseen or unscheduled closure or evacuation of DOE’s or FFB’s
office (each such circumstance, a “Force Majeure Event”); it
being understood that DOE or FFB, as the case may be, shall resume performance
hereunder as soon as such Force Majeure Event ceases to prevent such Lender
Party from performing hereunder.

    

    2.5           Advance Requirements under
the Funding Agreements.  Notwithstanding anything to the
contrary contained in this Article II (Funding), the Borrower shall
comply with each disbursement requirement set forth in the Funding
Agreements.  Unless otherwise specified in the Funding Agreements, all
determinations to be made with respect to the Funding Agreements shall be made
by DOE.

    

    
      
        
           

        

        
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    2.6           No Approval of
Work.  The making of any Advance or Advances under the Loan
Documents shall not be deemed an approval or acceptance by any Lender Party of
any work, labor, supplies, materials or equipment furnished or supplied with
respect to any Project.

    

    2.7           Reallocation of
Advances.  Not more than once every six months, DOE shall have
the right, in its sole discretion, to deliver a written notice (the “Loan Reclassification
Notice”) to the Borrower requesting the reclassification of all, or any
portion, of (x) the
outstanding Advances made under Note B secured by the ATVM Collateral into
Advances made under Note A secured by the Existing Collateral or (y) the outstanding Advances
made under Note A secured by the Existing Collateral into Advances made under
Note B secured by the ATVM Collateral to ensure that the aggregate outstanding
principal amount of the Advances under Note B on the date of such
reclassification are approximately 40% of the estimated Net Book Value of the
ATVM Collateral (including, for the avoidance of doubt, assets whose acquisition
or Development by the Borrower has been or is to be financed with such Advance
or any other Advances previously made hereunder but that are not yet included in
the Asset Register) after giving effect to such reclassification; provided that in no event may
the aggregate principal amount of Advances outstanding at any time under Note B
exceed the aggregate amount of the then outstanding Advances the proceeds of
which were used to fund capitalizable facilities and tooling.  The
Borrower shall execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, within a reasonable period following delivery of
such Loan Reclassification Notice, such amendments or supplements hereto or to
any other Loan Document, and such further instruments, and take such further
actions, as may be necessary in DOE’s reasonable judgment to effectuate such
reclassification of Advances.

    

    ARTICLE
III

    

    PAYMENTS;
PREPAYMENTS

    

    3.1           Place and Manner of
Payments.

    

    (a)       All
payments due under any Note shall be made by the Borrower to FFB pursuant to the
terms of the Funding Agreements.

    

    (b)       All
payments to be made to DOE under this Agreement shall be made to DOE in lawful
currency of the United States of America in immediately available funds before
1:00 p.m. (District of Columbia time) on the date when due to such account as
DOE shall direct by written notice to the Borrower not less than five Business
Days prior to the date when due.

    

    
      
        
           

        

        
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    (c)       In
the event that the date of any payment to DOE or the expiration of any time
period hereunder occurs on a day which is not a Business Day, then such payment
or expiration of time period shall be made or occur on the next succeeding
Business Day and such extension of time shall in such cases be included in
computing interest or fees, if any, in connection with such
payment.

    

    3.2           Payment of the Facility
Fee.  The Borrower shall pay to DOE on the Principal Instrument
Delivery Date, a Facility Fee in the aggregate amount of
$5,937,000.  Once paid, the Facility Fee shall not be refundable under
any circumstances.

    

    3.3           Maturity and
Amortization.

    

    (a)       Maturity
Date.  The Borrower shall repay all outstanding Loans on the
Maturity Date.

    

    (b)       Quarterly
Payments.  Each Note shall (i) be stated to mature in 40
equal consecutive quarterly installments of principal payable on each Quarterly
Payment Date, commencing on September 15, 2012, and (ii) provide for the payment
of interest in accordance with Section 3.5 (Interest Provisions Relating to All
Advances) and the Funding Agreements.

    

    3.4           Evidence of
Debt.

    

    (a)       Records.  DOE
shall maintain, or cause to be maintained, in accordance with its usual
practice, internal records evidencing the amounts from time to time (i) advanced by FFB under
the Note Purchase Agreement and the Notes, (ii) paid by DOE to FFB
pursuant to Section 6.3 of the Program Financing Agreement and (iii) paid by or on behalf of
the Borrower from time to time in respect thereof.

    

    (b)       Prima Facie
Evidence.  Except as otherwise provided in any Loan Document,
the entries made in the internal records maintained by or on behalf of DOE
pursuant to paragraph (a) above shall constitute prima facie evidence of the
existence and amount of the Note A Obligations or the Note B Obligations of the
Borrower as therein recorded.

    

    3.5           Interest Provisions Relating
to All Advances.

    

    (a)       Interest Account and
Interest Computations.  Interest shall accrue on the unpaid
principal amount of each Advance from the date such Advance is disbursed to the
Borrower or otherwise disbursed or deemed disbursed pursuant to the Note
Purchase Agreement and the relevant Note, to the date such Advance is due, at a
rate per annum as specified in the Funding Agreements.  All overdue
amounts in respect of any Advance will (x) accrue interest at the
Late Charge Rate and (y) be payable by the Borrower
in accordance with the Funding Agreements.  The Borrower hereby
authorizes FFB to record in an account or accounts maintained by FFB on its
books (i) the
interest rates applicable to all Advances, (ii) the date and amount
of each principal and interest payment on each Advance outstanding, and (iii) such other
information as FFB may determine is necessary for the computation of interest
payable by the Borrower under the relevant Note.  The Borrower agrees
that all computations of interest by FFB pursuant to this Section 3.5 shall, in
the absence of manifest error, be prima facie evidence of the
amount thereof.  All computations of interest shall be made as set
forth in the relevant Funding Agreement.

    

    
      
        
           

        

        
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    (b)       Interest Payment
Dates.  Subject to the terms of the Note Purchase Agreement and
the relevant Note, the Borrower shall pay accrued interest on the outstanding
principal amount of each Advance on each Quarterly Payment Date, on each
prepayment (to the extent thereof), and at maturity (whether by acceleration or
otherwise).

    

    3.6           Prepayments.

    

    (a)       Terms of All
Prepayments.

    

    (i)           
With respect to any prepayment of any Advance, whether such prepayment is
voluntary or mandatory, including a prepayment upon acceleration, the Borrower
shall comply with all applicable terms and provisions of this Agreement and the
Funding Agreements.

    

    (ii)           All
prepayments of any Note shall be (A) applied to Advances as
specified in the relevant Prepayment Election Notice (subject to Section
3.6(c)(vii) to the extent applicable) and (B) due in an amount equal to
the Prepayment Price calculated by FFB in accordance with the terms of the
respective Note.

    

    (iii)          The
Borrower may not reborrow the principal amount of any Advance that is prepaid,
nor shall any such prepayment create availability for further borrowings during
the Availability Period.

    

    (iv)          If
the Borrower shall fail to make a prepayment to FFB on any Intended Prepayment
Date in accordance with this Section 3.6 with respect to any notice of
prepayment delivered to DOE and FFB, the Borrower shall pay FFB a Late Charge on
any unpaid amount from the Intended Prepayment Date to the date on which payment
is made, computed in accordance with the provisions of the relevant
Note.

     

    
      
        
        

      

      
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    (b)       Voluntary
Prepayments.  The Borrower may at any time and from time to
time prepay all or any portion of the outstanding principal amount of any
Advance under any Note, or prepay such Note in its entirety upon prior
submission of a Prepayment Election Notice by the Borrower to DOE and FFB not
less than five Business Days prior to the Intended Prepayment Date in accordance
with the terms hereof and the relevant Note.  Partial prepayments of
any Advance shall be subject to a minimum amount equal to $100,000 of principal
or, if less, the total principal amount of such Advance then
outstanding.  Partial prepayments of any Advance shall be applied to
principal installments of such Advance in the inverse order of maturity in
accordance with the terms of the relevant Note.

    

    (c)       Mandatory
Prepayments.

    

    (i)           
Net Cash Proceeds from
Dispositions or Recovery Events.  If there shall be any
outstanding Advances under Note B, on the date that is 30 days after any date on
which the Borrower or any Subsidiary shall receive Net Cash Proceeds from
Specified ATVM Collateral Dispositions or Recovery Events relating to any ATVM
Collateral, in either case in an aggregate amount in excess of $5,000,000 (it
being understood that upon such amount of Net Cash Proceeds being reached,
prepayments or reinvestments in respect of further Specified ATVM Collateral
Dispositions or further Recovery Events relating to ATVM Collateral made after
the prepayment or reinvestment referred to below shall be required under this
Section 3.6(c)(i) only to the extent that the aggregate Net Cash Proceeds from
such further events again exceeds $5,000,000), then, unless a Reinvestment
Notice shall be delivered in respect thereof, the Borrower shall deliver to DOE
a Prepayment Election Notice specifying that it elects to prepay the Advances
made under Note B in a principal amount equal to such Net Cash Proceeds in
accordance with Section 3.6(c)(vii), provided that, if the
Borrower delivers a Reinvestment Notice prior to such 30th day, if there shall
be any Reinvestment Prepayment Amount in respect of such Reinvestment Event on
the related Reinvestment Prepayment Date, the Borrower shall deliver a
Prepayment Election Notice specifying that it elects to prepay the Advances made
under Note B in a principal amount equal to such Reinvestment Prepayment Amount
in accordance with Section 3.6(c)(vii),

    

    (ii)           Excess
Advances.  If on any Quarterly Reporting Date there is an
Excess Advance Amount, the Borrower shall, at the request of DOE in its sole
discretion, deliver to DOE a Prepayment Election Notice specifying that it
elects to prepay the Advances under the Notes in a principal amount equal to
such Excess Advance Amount in accordance with Section 3.6(c)(vii), provided that if no request
is made by DOE prior to the making of an Advance by FFB on the next succeeding
Advance Date, such repayment amount shall be deducted by the Borrower from
future Advances under the Funding Agreements pursuant to Section 5.5 (Advance
Deductions).

    

    
      
        
           

        

        
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    (iii)          Project Cancellation,
Modification or Suspension.  If a Project Repayment Event Date
shall have occurred with respect to any Project, the Borrower shall on or prior
to 90 days following such Project Repayment Event Date (or, if later, the date
upon which the applicable amount to be prepaid is determined pursuant to the
proviso to this subsection (iii)), deliver to DOE a Prepayment Election Notice
specifying that it elects to prepay all Advances theretofore made to fund
Eligible Project Costs associated with such Project (or Sub-Program) in a
principal amount equal to the aggregate amount of such Advances in accordance
with Section 3.6(c)(vii), provided that (A) any amount required to be
prepaid pursuant to this subsection (iii) shall not include that portion of
any such Advances made to fund Eligible Project Costs that are shared with any
other Project (or Sub-Program) in respect of which no Project Repayment Event
Date has occurred, (B)
the Borrower shall promptly, but in no event later than three Business Days
following the occurrence of a Project Repayment Event Date, notify DOE of such
event (a “Project Modification
Notice”), (C)
within 15 days after delivery of the Project Modification Notice, the Borrower
shall deliver a notice (the “Repayment Calculation
Notice”) specifying the amount to be prepaid (showing the calculation
thereof in reasonable detail), (D) the Borrower shall deliver
all information as DOE may reasonably request to enable DOE to determine whether
it disagrees with the calculations contained in the Repayment Calculation
Notice, and (E) in the
event DOE disagrees with the calculations set forth in the Repayment Calculation
Notice, the Chief Financial Officer of DOE shall have the right to review such
Repayment Calculation Notice and adjust the amount required to be prepaid by the
Borrower, provided that
any such adjustment by the Chief Financial Officer of DOE shall constitute DOE’s
“final agency action”, and provided further, that if DOE
disagrees with the calculations contained in the Repayment Calculation Notice
delivered by the Borrower pursuant to this subsection (iii) with respect to any
Project Repayment Event Date and the Borrower does not accept the determination
made by the Chief Financial Officer of DOE pursuant to subsection (iii)(E) above
with respect to such Project Repayment Event Date, then the Borrower shall not
be required under this subsection (iii) to deliver a Prepayment Election Notice,
or make any prepayment of Loans, with respect to such Project Repayment Event
Date until final resolution of any suit, action or proceeding brought by the
Borrower challenging such determination (each amount determined pursuant to this
clause 3.6(c)(iii), a “Project
Modification Prepayment Amount”).

    

    (iv)          Excess Project Loan
Amount.  If, on any date, the aggregate outstanding principal
amount of all Advances corresponding to any Project exceeds the Project Maximum
Loan Amount for such Project (such excess amount, the “Excess Project Loan Amount”),
the Borrower shall deliver to DOE a Prepayment Election Notice on such date
specifying it elects to prepay a principal amount of Advances under the Notes
equal to such Excess Project Loan Amount in accordance with
Section 3.6(c)(vii).

    

    
      
        
           

        

        
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    (v)           Excess Loan
Amount.  If, on any date, the aggregate outstanding principal
amount of all Advances under each of the Notes exceeds the Maximum Total Loan
Amount (such excess amount, the “Excess Loan Amount”), the
Borrower shall deliver to DOE a Prepayment Election Notice on such date
specifying that it elects to prepay a principal amount of Advances under the
Notes equal to such Excess Loan Amount in accordance with Section
3.6(c)(vii).

    

    (vi)          Delivery of a Prepayment
Election Notice to DOE.  In the event a Mandatory Prepayment is
required pursuant to this 3.6(c), an Authorized Transmitter of the Borrower
shall deliver, by an Acceptable Delivery Method, to DOE no later than ten
Business Days prior to the “Intended Prepayment Date” required in accordance
with the terms of this Section 3.6(c), which Prepayment Election Notice shall
specify the principal amount of any Advance or Advances to be prepaid in
accordance with this Section 3.6(c).

    

    (vii)         Timing of Mandatory
Prepayments.  Any Mandatory Prepayments of Advances made under
the Notes shall (i) be
made on the later of (x) the Intended Prepayment
Date set forth in the relevant Prepayment Election Notice delivered pursuant to
Section 3.6(c)(vi) or (y) the date that is five
Business Days following the date a Prepayment Election Notice is approved by DOE
in accordance with the terms of this Section 3.6(c), (ii) be applied to Advances
under the Notes in the order in which Advances were advanced by FFB to the
Borrower, which Advances shall be identified as required pursuant to this
Section 3.6(c)(vii) by the Borrower in such Prepayment Election Notice and
(iii) be due in an
amount equal to the Prepayment Price calculated in accordance with the terms of
the respective Note as specified by FFB, provided that, in the event
FFB fails to deliver a notice of the Prepayment Price in accordance with the
terms of the applicable Note no later than the Business Day immediately
preceding the prepayment date contemplated in subclause (i) above, the Borrower
shall either (x) (1) in good faith
calculate the Prepayment Price due in connection with such Mandatory Prepayment
and (2) make a
payment on such prepayment date to FFB in an amount equal to the amount so
calculated or (y) make
a payment on such prepayment date to FFB in an amount equal to the applicable
Net Cash Proceeds, Reinvestment Prepayment Amount, Excess Advance Amount,
Project Modification Prepayment Amount, Excess Project Loan Amount or Excess
Loan Amount, as the case may be, together, in each case, with accrued and unpaid
interest on such amount, provided further that, if the actual Prepayment
Price calculated by FFB (1) is greater than the amount
paid by the Borrower, the Borrower shall promptly, but in no event later than
one Business Day following delivery by FFB to the Borrower of notice of the
amount of such Prepayment Price, make a payment to FFB in an amount equal to the
difference between such Prepayment Price and the amount actually paid by the
Borrower or (2) is less
than the amount paid by the Borrower, the amount equal to the difference between
the Prepayment Price and the amount paid by the Borrower shall be credited to
the payment due by the Borrower to FFB on the Quarterly Payment Date immediately
following the date of such payment by the Borrower.

    

    
      
        
           

        

        
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    ARTICLE
IV

    

    REIMBURSEMENT
OBLIGATIONS

    

    4.1           Reimbursement and Other
Payment Obligations.

    

    (a)           The
Borrower agrees to pay to DOE or to such other Person as DOE shall direct as
follows:

    

    (i)          
 a sum, in U.S. Dollars, equal to the total of all amounts payable by DOE
to FFB pursuant to Section 6.3.1 of the Program Financing Agreement which relate
to, or arise out of, FFB providing or having provided financing under the Notes
(such amounts, “Reimbursement
Amounts”);

    

    (ii)           to
the extent permitted by Law, any and all charges, fees, reasonable and
documented costs and expenses which DOE may pay or incur, including attorneys’,
accountants’ and other consultants’ fees and expenses, and any and all recording
and filing fees that may be payable or determined to be payable, in connection
with (w) the
enforcement, defense or preservation of any rights in respect of any of the
Transaction Documents during the continuance of an Event of Default, including
defending, monitoring or participating in any litigation or proceeding
(including any bankruptcy proceeding in respect of any party to any Transaction
Document or any Subsidiary thereof) relating to any of (A) the Loan Documents or the
transactions contemplated thereby or (B) the Existing Collateral
Security Documents or the transactions of any Lender Party with the Borrower,
any other Grantor or the Existing Collateral Trustee contemplated thereby,
(x) the foreclosure
against, sale or other disposition of collateral, if any, securing (1) any obligations under any
of the Loan Documents or (2) any obligations to any
Lender Party under the Existing Collateral Security Documents, or pursuit of any
other remedies (I)
under any of the Loan Documents or (II) available to the Lender
Parties under the Existing Collateral Security Documents, to the extent such
costs and expenses are not recovered from such foreclosure, sale or other
disposition, (y) any
review or approval by DOE in connection with the delivery of collateral or
substitute collateral, if any, under any of the Transaction Documents, or (z) any amendment, supplement
or modification of any Transaction Document, or any waiver or consent under any
Transaction Document;

    

    
      
        
           

        

        
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    (iii)          to
the extent permitted by Law, interest on any and all amounts described in this
Article IV (other than Loan Document Amounts, interest on which shall accrue and
be payable only to the extent (including subject to any conditions provided for
therein and any defenses of the Borrower thereunder or in respect thereof), at
the times, in the manner and in the amounts provided for in the Loan Documents
(excluding this Section 4.1)) from the date payable by DOE under the Program
Financing Agreement (or, in the case of amounts other than principal and
interest on the Notes, from the fifth Business Day after a demand therefor)
until payment thereof in full by the Borrower, at the Late Charge
Rate.

    

    (b)           Subject
to Section 4.5 (Payment of
Loan Document Amounts), all amounts payable under Section 4.1(a) shall be
payable within five Business Days after a demand therefor, in U.S. Dollars, in
full, without any requirement on the part of DOE to seek reimbursement from any
other sources of indemnity therefor.

    

    4.2           Subrogation.  In
furtherance of and not in limitation of DOE’s right of subrogation, the Borrower
acknowledges that, to the extent of any payment made by DOE of Reimbursement
Amounts, DOE shall be fully subrogated to the extent of any such payment, and
any additional interest due on any late payment, to the rights of FFB under the
Notes, the Note Purchase Agreement and any other Transaction
Documents.  The Borrower agrees to such subrogation and agrees to
execute such instruments and to take such actions as DOE may reasonably request
to evidence such subrogation and to perfect the right of DOE to receive any
amounts paid or payable thereunder.  If and to the extent that DOE
shall be fully and indefeasibly reimbursed in cash or immediately available
funds by the Borrower pursuant to Section 4.1 (Reimbursement and Other Payment
Obligations) in respect of any payment made by DOE of Reimbursement
Amounts, such reimbursement shall be deemed to constitute an equal and
corresponding payment in respect of DOE’s rights of subrogation hereunder in
respect of such payment of Reimbursement Amounts.

    

    4.3           Obligations
Absolute.

    

    (a)       Subject
to Section 4.5 (Payment of
Loan Document Amounts), the obligations of the Borrower under this
Article IV shall be absolute and unconditional, and shall be paid or performed
strictly in accordance with this Agreement under all circumstances irrespective
of:

    

    
      
        
           

        

        
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    (i)          
 any lack of validity or enforceability of, or any amendment or other
modifications of, or waiver with respect to the Notes, this Agreement or any
other Loan Document;

    

    (ii)           any
exchange or release of any other obligations hereunder;

    

    (iii)          the
existence of any claim, setoff, defense, reduction, abatement or other right
which the Borrower may have at any time against DOE or any other
Person;

    

    (iv)         any
document presented in connection with any Loan Document proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect;

    

    (v)         
any payment by DOE pursuant to the terms of the Program Financing Agreement
against presentation of a certificate or other document which does not strictly
comply with terms of such Program Financing Agreement;

    

    (vi)         any
breach by the Borrower of any representation, warranty or covenant contained in
any of the Loan Documents;

    

    (vii)        except
to the extent prohibited by mandatory provisions of Law, status as, and any
other rights of, a “debtor” under the Uniform Commercial Code as in effect from
time to time in the State of New York or under the Law of any other relevant
jurisdiction;

    

    (viii)       any
duty on the part of DOE to disclose any matter, fact or thing relating to the
business, operations or financial or other condition of the Borrower now known
or hereafter known by DOE;

    

    (ix)          any
disability or other defense of the Borrower or any other Person;

    

    (x)           any
act or omission by DOE that directly or indirectly results in or aids the
discharge of the Borrower or any other Person, by operation of Law or
otherwise;

    

    (xi)          any
change in the time, manner or place of payment of, or in any other term of, all
or any of its obligations or liabilities hereunder or any compromise, renewal,
extension, acceleration or release with respect thereto, any change in the
collateral subject to its obligations or liabilities hereunder or any amendment
or waiver of or any consent to departure from any other guarantee for all or any
of its obligations or liabilities hereunder;

    

    
      
        
           

        

        
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    (xii)         any
change in the corporate structure or existence of the Borrower;

    

    (xiii)        any
exchange, taking, or release of Collateral;

    

    (xiv)        any
application of ATVM Collateral to the Note B Secured Obligations or Existing
Collateral to the Note A Secured Obligations; or

    

    (xv)         any
other circumstances or conditions, foreseen or unforeseen, now existing or
hereafter occurring, which might otherwise constitute a defense available to, or
discharge of, the Borrower in respect of any Loan Document (other than a defense
of payment or performance).

    

    (b)       Subject
to Section 4.5, the Borrower and any and all others who may become liable for
all or part of the obligations of the Borrower under this Agreement agree to be
bound by this Article IV and, to the extent permitted by Law:

    

    (i)           
waive and renounce any and all redemption and exemption rights and the benefit
of all valuation and appraisement privileges against the indebtedness and
obligations evidenced by any Transaction Documents or by any extension or
renewal thereof;

    

    (ii)           waive
presentment and demand for payment, notices of nonpayment and of dishonor,
protest of dishonor and notice of protest, except as expressly provided
otherwise in the Transaction Documents;

    

    (iii)          waive
all notices in connection with the delivery and acceptance hereof and all other
notices in connection with the performance, default or enforcement of any
payment hereunder except as required hereby or by the other Transaction
Documents;

    

    (iv)          waive
all rights of abatement, diminution, postponement or deduction, and any defense
(other than a defense of payment or performance), that any party to any
Transaction Document or any beneficiary thereof may have at any time against DOE
or any other Person, or out of any obligation at any time owing to DOE or
FFB;

    

    (v)           agree
that its liabilities hereunder shall be unconditional and without regard to any
setoff, counterclaim or the liability of any other Person for the payment
hereof;

    

    (vi)          agree
that any consent, waiver or forbearance hereunder with respect to an event shall
operate only for such event and not for any subsequent event;

    

    
      
        
           

        

        
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    (vii)         consent
to any and all extensions of time that may be granted by DOE or FFB with respect
to any payment hereunder or other provisions hereof and to the release of any
security at any time given for any payment hereunder, or any part thereof, with
or without substitution, and to the release of any Person or entity liable for
any such payment;

    

    (viii)    
   waive all defenses and allegations based on or arising out of
any contradiction or incompatibility among its obligations or liabilities
hereunder and any of its other obligations;

    

    (ix)        
  waive, unless and until its obligations or liabilities hereunder
have been performed, paid, satisfied or discharged in full, any right to enforce
any remedy that DOE or FFB now has or may in the future have against the
Borrower or any other Person;

    

    (x)         
  waive any benefit of, or any right to participate in, any guarantee
or insurance whatsoever now or in the future held by DOE or FFB;

    

    (xi)      
    waive the benefit of any statute of limitations
affecting its liability hereunder; and

    

    (xii)       
  consent to the addition of any and all other makers, endorsers,
guarantors and other obligors for any payment hereunder, and to the acceptance
of any and all other security for any payment hereunder, and agree that the
addition of any such obligors or security shall not affect the liability of the
parties hereto for any payment hereunder.

    

    (c)       The
Borrower shall remain liable for (i) its reimbursement and
other payment obligations under this Agreement and the other Loan Documents and
(ii) its payment
obligations to the Lender Parties under the Existing Collateral Security
Documents until such obligations have been irrevocably paid or otherwise
satisfied and discharged in full in accordance with this Agreement and the other
Transaction Documents, and nothing except irrevocable payment, satisfaction or
discharge in full thereof in accordance with this Agreement and the other
Transaction Documents shall release the Borrower from such
obligations.

    

    (d)       Except
as expressly provided herein, (i) the obligations and
liabilities of the Borrower under this Agreement or the other Loan Documents and
(ii) the obligations
and liabilities of the Borrower to the Lender Parties under the Existing
Collateral Security Documents shall not be conditioned or contingent upon the
pursuit or exercise by DOE, FFB or any other Person at any time of any right or
remedy (nor shall such obligations and liabilities be affected, released or
modified by any action, failure, delay or omission by DOE, FFB or any other
Person in the enforcement or exercise of any right or remedy under Law) against
any Person that may be or become liable in respect of all or any part of the
obligations and liabilities of the Borrower (x) under this Agreement or
the other Loan Documents or (y) to the Lender Parties
under the Existing Collateral Security Documents.

    

    
      
        
           

        

        
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    4.4           Evidence of
Payment.  In the event of any payment by DOE that is required
to be reimbursed or indemnified by the Borrower, the Borrower agrees to accept
evidence of payment by DOE as prima facie evidence of the
amount thereof.

    

    4.5           Payment of Loan Document
Amounts.

    

    (a)       Anything
in this Article IV to the contrary notwithstanding, including Section 4.4 (Evidence of Payment), (i) amounts payable by the
Borrower pursuant to Section 4.1 (Reimbursement and Other Payment
Obligations) in respect of payments made or required to be made by DOE to
FFB on account of Loan Document Amounts shall be payable by the Borrower only to
the extent (including subject to any conditions provided for in the Loan
Documents and any defenses of the Borrower under the Loan Documents), at the
times, in the manner and in the amounts that such Loan Document Amounts would
otherwise have been payable by the Borrower under the Loan Documents (including,
for the avoidance of doubt, on an accelerated basis following the occurrence of
an Event of Default), (ii) amounts payable by the
Borrower under Section 4.1 shall be without duplication of any amounts payable
by the Borrower pursuant to (v) this Agreement, (w) the Notes, (x) the Note Purchase
Agreement, (y) the
subrogation rights referred to in Section 4.2 (Subrogation) or (z) the provisions of Section
12.8 (Indemnification)
and (iii) no amount
shall be payable by the Borrower under Section 4.1 in respect of payments made
or required to be made by DOE to FFB in respect of any liability, loss, cost or
expense relating to or arising out of any sale, assignment or other transfer of
any Note or portion thereof by FFB to DOE, except during the continuance of an
Event of Default.

    

    (b)       If
an event permitting the acceleration of any Advance and/or any Note shall at any
time have occurred and be continuing, and such acceleration of any Advance
and/or any Note shall at such time be prevented by reason of the pendency
against the Borrower or any other Person of a case or proceeding under a
bankruptcy or insolvency law, the Borrower agrees that, for purposes of this
Agreement and its obligations hereunder, in respect of any payment made by DOE
to FFB, such Advance and/or such Note shall be deemed to have been accelerated
with the same effect as if such Advance and/or such Note had been accelerated in
accordance with the terms of the Funding Agreements.

    

    
      
        
           

        

        
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    ARTICLE
V

    

    CONDITIONS
PRECEDENT

    

    5.1           Conditions Precedent to the
Principal Instrument Delivery Date.  The obligation of DOE to
deliver to FFB the Principal Instruments in accordance with Section 4.2 of the
Note Purchase Agreement required for FFB, on the Financial Closing Date, to
purchase the Notes is subject to the prior satisfaction (or waiver in writing),
as determined by (x) in
all cases, DOE, in its sole discretion, and (y) with respect to any
documents or instruments addressed to FFB or to which FFB is party, FFB, in its
sole discretion, of each of the following conditions precedent as of the
Principal Instrument Delivery Date and to their continued satisfaction on the
Financial Closing Date (but in no event later than September 30,
2009).

    

    (a)       Loan
Documents.  DOE shall have received fully executed originals in
sufficient counterparts for each of DOE, FFB and any Collateral Trustee, in each
case that is party thereto, of each of the following documents, each of which
shall be in form and substance satisfactory to DOE and each such party thereto,
and shall be in full force and effect:

    

    (i)          
 Arrangement
Agreement.  This Agreement;

    

    (ii)           Funding Agreements.
Each of the following documents (the “Funding
Agreements”):

    

    (A)           the
Program Financing Agreement;

    

    (B)           the
Note Purchase Agreement;

    

    (C)           Note
A; and

    

    (D)           Note
B.

    

    (iii)           Guarantee.  The
Guarantee;

    

    (iv)           ATVM Collateral Security
Documents. Each of the following documents:

    

    (A)           the
ATVM Collateral Trust Agreement;

    

    (B)           the
ATVM Collateral Security Agreement; and

    

    (C)           the
UCC-1 financing statements to be filed in each of the recording offices
specified in Schedule 6.14(d).

    

    
      
        
           

        

        
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    (v)           Existing Credit Agreement
and Existing Collateral Security Document Designations and Intercreditor
Agreement.  Each of the following:

    

    (A)          evidence
that the Note A Secured Obligations have been designated “Second Priority
Additional Debt” under the Existing Collateral Trust Agreement;

    

    (B)          evidence
that DOE and, to the extent contemplated in the Intercreditor Agreement, the
Intercreditor Agent, have been designated as “Additional Debt Representatives”
in respect of the Note A Secured Obligations under the Existing Collateral
Trust Agreement;

    

    (C)          evidence
that the Note A Secured Obligations have been designated “Permitted Phase I
Government Debt” under the Existing Credit Agreement; and

    

    (D)          the
Intercreditor Agreement.

    

    (b)       Borrower FFB
Documents.  DOE shall have received each of the documents,
including the Borrower Instruments, the Certificate Specifying Authorized
Borrower Officials and the Opinion of Borrower’s Counsel re: Borrower
Instruments required to be delivered by the Borrower pursuant to Section 3.2 of
the Note Purchase Agreement.

    

    (c)       Existing Credit Agreement
and Secured Note Amendments.  DOE shall have received certified
copies of the amendments to the Existing Credit Agreement and the Note Purchase
Agreement in respect of the Borrower’s 9.5% Guaranteed Secured Note due January
1, 2018 authorizing the transactions contemplated by this Agreement and the
other Loan Documents.

    

    (d)       Existing Collateral Security
Documents.  DOE shall have received certified copies of the
Existing Collateral Security Agreement and the Existing Collateral Trust
Agreement.

    

    (e)       Due Diligence
Review.  DOE shall have completed its due diligence review of
the Borrower, the other Obligors, each of the Projects and all other matters
related thereto, and the results thereof shall be satisfactory to DOE in its
sole discretion.

    

    (f)        Obligor
Certificates.  DOE shall have received a fully executed
original certificate of each Obligor, dated the Principal Instrument Delivery
Date, substantially in the form of Exhibit B, with appropriate insertions and
attachments, including (i) the certificate of
incorporation or certificate of formation or equivalent document of such Obligor
certified by the relevant authority of the jurisdiction of organization of such
Obligor, (ii) the
by-laws, operating agreement or other similar constitutive document of such
Obligor, (iii) a long
form good standing certificate for such Obligor (other than Grupo Ford) from its
jurisdiction of organization and (iv) solely in the case of
Grupo Ford, (x) a
certified copy of the relevant Folio Mercantil and (y) a copy of its Registro de
Socios.

    

    
      
        
           

        

        
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    (g)       Information.  DOE
shall have received a fully executed original certificate of the Borrower, dated
the Principal Instrument Delivery Date, substantially in the form of Exhibit C,
certifying that:

    

    (i)          
 the information contained in the Application, together with all other
information delivered by or on behalf of the Borrower or any Subsidiary in
connection with such Application and the negotiation of the Loan Documents,
including the Information Certificate, when taken as a whole, is true and
complete in all material respects and does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained therein in light of the circumstances under which such statements were
made, not misleading in any material respect; and

    

    (ii)           no
event has occurred that has caused (A) the Borrower to cease to
be an Eligible Applicant, as defined in the Applicable Regulations, or (B) any Project to cease to be
an Eligible Project, as defined in the Applicable Regulations.

    

    (h)    
  Information
Certificate.  DOE shall have received, at least ten days prior
to the Principal Instrument Delivery Date, an executed Information Certificate
substantially in the form, dated June 23, 2009, previously submitted to and
accepted by DOE.

    

    (i)        Lien
Searches.  DOE shall have received the results of recent lien
searches, satisfactory to DOE in its sole discretion, in Delaware and each other
jurisdiction in which Uniform Commercial Code financing statements are required
to be filed pursuant to Section 5.3(h) (Advance Approval Conditions
Precedent), together with copies of any financing statements disclosed by
such searches and such searches shall disclose no Liens on any assets encumbered
by any Existing Collateral Security Document, except for Existing Collateral
Permitted Liens.

    

    (j)        Evidence of no Judgment
Liens.  DOE shall have received a fully executed original
certificate from a Responsible Officer of the Borrower that the Borrower does
not have a judgment lien against any of its property for a debt owed to the
United States of America and the Borrower does not have an outstanding debt
(other than a debt under the Internal Revenue Code of 1986) owed to the United
States of America or any agency thereof that is in delinquent status, as the
term “delinquent status” is defined in 31 C.F.R. § 285.13(d).

    

    
      
        
           

        

        
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    (k)       Legal
Opinions.  DOE shall have received executed originals of the
following legal opinions, each dated as of the Principal Instrument Delivery
Date:

    

    (i)          
 the legal opinion of Davis Polk and Wardwell LLP, counsel to the Borrower
and its Subsidiaries, substantially in the form of Exhibit D;

    

    (ii)           the
legal opinion of an associate general counsel to the Borrower, substantially in
the form of Exhibit E;

    

    (iii)          the
legal opinion of local counsel in each of:  Delaware, substantially in
the form of Exhibit F-1; Bermuda, substantially in the form of Exhibit F-2 and
Mexico, substantially in the form of Exhibit F-3;

    

    Each such
legal opinion shall cover such other matters incident to the transactions
contemplated by this Agreement and the Funding Agreements as DOE or FFB may
reasonably require.

    

    (l)        Environmental
Review.  DOE shall have received, in form and substance
satisfactory to DOE, information sufficient for DOE to complete the NEPA review
process with respect to each Project in accordance with DOE policy; provided that DOE
acknowledges that, as of the date hereof, no further information is required to
be delivered pursuant to this Section 5.1(l).

    

    (m)   
  Financial
Statements.  DOE shall have received (i) the most recent publicly
filed audited annual financial statements and unaudited quarterly financial
statements of the Borrower, (ii) the most recent statutory
audited consolidated annual financial statements for each of FMCC, Ford South
Africa and Volvo, (iii)
the most recent statutory audited annual financial statements for each of Ford
Argentina, Ford Canada, Grupo Ford and Ford Mexico, (iv) the most recent statutory
audited annual financial statements of any Foreign Pledgee, in each case under
clauses (ii), (iii) and (iv) above, to the extent the Borrower has an ongoing
obligation to deliver such financial statement as of the Principal Instrument
Delivery Date under the Existing Credit Agreement; provided that any financial
statements required to be delivered with respect to the Borrower or FMCC shall
be deemed to have been delivered if included in the Borrower’s or FMCC’s Annual
Report on Form 10-K or the Borrower’s or FMCC’s Quarterly Report on Form 10-Q
for the relevant period filed with the SEC;

    

    (n)       Project Business
Plan.  DOE shall have received, at least five Business Days
prior to the Principal Instrument Delivery Date, an updated Project Business
Plan, substantially in the form of the “Sample Project Business Plan”, dated
June 23, 2009, previously submitted to and accepted by DOE or in such other form
as may be acceptable to DOE.

    

    
      
        
           

        

        
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    (o)       Consents.  DOE
shall have received, in form and substance satisfactory to DOE, (i) evidence that all
Governmental Approvals and other consents, approvals and waivers listed on
Schedule 5.1(o), each in form and substance satisfactory to DOE, shall have been
duly obtained, (ii) a
copy thereof certified as of the Principal Instrument Delivery Date by a
Responsible Officer of the Borrower as being true and complete and (iii) a fully executed
original certificate of a Responsible Officer of the Borrower stating that such
consents, approvals and waivers are in full force and effect and that all
applicable waiting periods have expired without any action being taken or
threatened which would restrain, prevent or otherwise impose adverse conditions
on the Borrower.

    

    (p)       Insurance.  DOE
shall have received, in form and substance satisfactory to DOE, a copy of a
fully executed original insurance certificate confirming (i) the material property and
casualty and excess liability insurance carried by the Borrower and (ii) that (x) DOE is named as an
additional insured under the Borrower’s excess liability insurance policy or
policies to the extent that the claim or loss relates directly or indirectly to
any Project, and (y) in
the case of property and casualty insurance, to the extent provided by the
Borrower to the lenders under the Existing Credit Agreement, DOE will be named,
to the extent not inconsistent with the rights of the holders of Senior
Obligations, loss payee;

    

    (q)       Payment of the Facility
Fee.  DOE shall have received, in form and substance
satisfactory to it, confirmation that the Facility Fee due and payable on the
Principal Instrument Delivery Date has been paid in full.

    

    (r)        Lobbying
Certification.  DOE shall have received, in form and substance
satisfactory to it, the certification to be filed by recipients of federal loans
regarding lobbying, in the form set forth in Appendix A to 31 C.F.R. Part 21,
attached hereto as Exhibit G, and, if required under 31 C.F.R. Part 21,
disclosure forms to report lobbying, in the form set forth in Appendix B to 31
C.F.R. Part 21, attached hereto as Exhibit H.

    

    (s)       Representations and
Warranties.  DOE shall have received, in form and substance
satisfactory to it, evidence that each of the representations and warranties
made by any Obligor in or pursuant to the Transaction Documents (other than the
representations and warranties contained in Article 8 of the Note Purchase
Agreement) shall be true and correct in all material respects on and as of such
date as if made on and as of such date (except to the extent that any
representation or warranty contained in any Existing Collateral Security
Document relates to an earlier date, in which case such representation or
warranty shall have been true and correct in all material respects on and as of
such earlier date).

    

    (t)        Reliance
Letters.  DOE shall have received, in form and substance
satisfactory to it, reliance letters permitting DOE and FFB to rely on each of
the legal opinions delivered with respect to the Existing
Collateral.

    

    
      
        
           

        

        
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    (u)       Other Documents and
Information.  FFB and DOE shall have received any other
certificates, documents, agreements and information respecting the Borrower and
each other Obligor as they may have reasonably requested.

    

    5.2           Conditions Precedent to FFB
Purchase of the Notes.  The obligation of FFB to deliver an
acceptance notice pursuant to Section 5.1 of the Note Purchase Agreement to
purchase each of the Notes is subject to the prior satisfaction (or waiver in
writing) as determined by FFB of each of the following conditions precedent as
of the date of the Principal Instrument Delivery Date and as of the Financial
Closing Date:

    

    (a)       Conditions Precedent in the
Funding Agreements.  Each condition precedent under the Funding
Agreements to the purchase of each of the Notes by FFB shall have been satisfied
in the sole determination of FFB.

    

    (b)       Receipt of the Principal
Instruments.  FFB shall have received from DOE each of the
Principal Instruments.

    

    (c)       Representations and
Warranties.  Each of the representations and warranties made in
Sections 6.2 (No
Change), 6.6 (Litigation), 6.7 (No Default), 6.8 (Ownership of Property), 6.9
(Intellectual
Property), 6.13 (Guarantors; Pledged Equity),
6.14(c) (Security
Documents) and 6.20 (Project Business Plan) shall
be true and correct in all material respects on and as of such date as if made
on and as of such date.

    

    5.3           Advance Approval Conditions
Precedent.  The obligation of DOE to deliver an Advance Request
Approval Notice directing FFB to make each Advance (including the initial
Advance) in accordance with the Note Purchase Agreement and the relevant Note is
subject to the prior satisfaction (or waiver in writing) of each of the
following conditions precedent as of a date not later than the third Business
Day prior to the Requested Advance Date and to their continued satisfaction on
the Requested Advance Date for such Advance:

    

    (a)       Advance
Request.  DOE shall have received from the Borrower, no later
than (i) seven Business
Days, in the case of an Advance or Advances in an amount less than or equal to
$100,000,000, or (ii)
10 Business Days, in the case of an Advance or Advances in an amount in excess
of $100,000,000, prior to such Requested Advance Date, an Advance Request in
accordance with Section 2.3 (Mechanics for Requesting
Advances) and the relevant Note.

    

    (b)       Representations and
Warranties.  Each of the representations and warranties made by
any Obligor in or pursuant to the Transaction Documents (other than the
representations and warranties contained in Article 8 of the Note Purchase
Agreement) shall be true and correct in all material respects on and as of such
date as if made on and as of such date (except to the extent such
representations and warranties relate to an earlier date (including those set
forth in Sections 6.2 (No
Change), 6.6 (Litigation), 6.7 (No Default), 6.8 (Ownership of Property), 6.9
(Intellectual
Property), 6.13 (Guarantors; Pledged Equity)
and 6.14(c) (Security
Documents)), in which case, such representations and warranties shall
have been true and correct in all material respects as of such earlier
date).

    

    
      
        
           

        

        
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    (c)       No
Default.  No Default or Event of Default shall have occurred
and be continuing on such date, before and after giving effect to the extensions
of credit requested to be made on such date.

    

    (d)       Performance
Metrics.  With respect to any portion of any Advance or
Advances corresponding to a Project or a Sub-Program, as of the previous
Reporting Date, (x) the
Borrower shall not have failed to achieve (i) any Post-Program Approval
Timing Milestone for such Project or any Sub-Program thereof by more than four
months after the corresponding date set forth in the Project Business Plan or
(ii) Program Approval
for such Project or any Sub-Program thereof by more than 24 months after the
Estimated Program Approval Date set forth for such Project or Sub-Program in the
Project Business Plan, (y) the anticipated fuel
economy status with respect to such Project set forth on the page titled
“Project Business Plan – Fuel Economy” under the heading “Present Status – Fuel
Economy (MPG)” of the Project Business Plan (the “Fuel Economy Status”) shall
have met the Fuel Economy Requirement for at least one of the prior two
reporting periods, and (z) the Fuel Economy Status
for such Project shall not be more than 5% below the relevant Fuel Economy
Target for such Project, provided that, so long as the
Borrower cannot satisfy the conditions precedent set forth in this Section
5.3(d) with respect to a Project (such Project, a “Noncompliant Project”), no
Advances shall be made to fund Eligible Project Costs with respect to such
Project or any Sub-Program thereof.  For the avoidance of doubt, if
all of the other conditions precedent set forth in this Section 5.3 and Section
5.4 (Conditions Precedent to
FFB Advance) have been satisfied or waived, Advances with respect to
Eligible Project Costs for Projects satisfying the conditions precedent set
forth in this Section 5.3(d) shall be made notwithstanding the existence of a
Noncompliant Project.

    

    (e)          Aggregate
Advances.  Evidence that (i) the aggregate principal
amount of all outstanding Advances made with respect to any Project under the
Notes, after giving effect to the Advances to be made on the Requested Advance
Date, do not exceed the Project Maximum Loan Amount with respect to such
Project, (ii) the
aggregate principal amount of all outstanding Advances made with respect to all
Projects under the Notes, after giving effect to such Advances, do not exceed
the Maximum Total Loan Amount, (iii) the aggregate principal
amount of all outstanding Advances made under Note A does not exceed the Maximum
Total Loan A Amount, (iv) the aggregate principal
amount of all outstanding Advances made under Note B does not exceed the Maximum
Total Loan B Amount and (v) the Borrower has made all
Borrower Project Payments required pursuant to Section 7.13 (Borrower Project
Commitment).

    

    
      
        
           

        

        
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    (f)        Davis-Bacon
Act.  DOE shall have received a certification of the Borrower
that the Borrower is in compliance with the obligation to pay prevailing wages
to all laborers and mechanics employed by contractors or subcontractors during
construction, alteration or repair of assets that are financed with proceeds of
any Advances.

    

    (g)       No Federal
Funding.  DOE shall have received a certification of the
Borrower that for all Advances, (i) neither the Borrower nor
any of its Subsidiaries has any application for Federal Funding pending with
respect to the Eligible Project Costs to be reimbursed out of the requested
Advance or Advances, and (ii) no Eligible Project Costs
to be reimbursed out of the requested Advance or Advances are Noneligible ATVM
Project Costs.

    

    (h)       Filings, Registrations and
Recordings.  If the Borrower shall have added any additional
filing or other requirements to Schedule 6.14(d) since the date on which the
most recent previous Advance was made, evidence that such additional filing or
other requirements have been satisfied.

    

    (i)        Release of ATVM
Collateral.  DOE shall have received a Collateral Release,
substantially in the form attached hereto as Exhibit I, executed by the
Administrative Agent and the Existing Collateral Trustee (a “Collateral Release”),
releasing from the Liens thereon granted under the Existing Collateral Documents
the ATVM Collateral Uniquely Identified on the updated Asset Register delivered
in connection with such Advance Request.

    

    (j)        Conditions Precedent in the
Funding Agreements.  Each of the conditions precedent (other
than delivery of the Advance Request Approval Notice by DOE) to (i) an Advance (including the
initial Advance) under Note A in accordance with the Note Purchase Agreement and
Note A have been satisfied or (ii) an Advance (including the
initial Advance) under Note B in accordance with the Note Purchase Agreement and
Note B have been satisfied.

    

    5.4           Conditions Precedent to FFB
Advance.  The obligation of FFB to make each Advance (including
the initial Advance) under the Note Purchase Agreement and the relevant Note is
subject to the prior satisfaction (or waiver in writing) as determined by FFB of
each of the following conditions precedent as of the date of the relevant
Advance Request and as of the Advance Date:

    

    (a)       Receipt of Advance Request
Approval Notice.  FFB shall have received from DOE an Advance
Request Approval Notice.

    

    
      
        
           

        

        
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    (b)       Absence of Drawstop
Notice.  No Drawstop Notice shall have been delivered to DOE or
FFB.

    

    5.5           Advance
Deductions.  Unless the Borrower shall have prepaid the
applicable Advance in the amount of such excess as provided in Section
3.6(c)(ii) (Prepayments), prior to each
Requested Advance Date immediately following delivery of an Agreed-Upon
Procedures Report indicating that proceeds of any Advance were not applied to
pay Eligible Project Costs for the relevant Project for which such funds were
drawn, the Borrower shall (x) in the relevant Advance
Request, deduct from the total amount of the Advance or Advances to be made on
such Requested Advance Date an amount equal to the amount that would otherwise
have been prepayable by the Borrower pursuant to Section 3.6(c)(ii) and (y) together with the relevant
Advance Request, deliver, by an Acceptable Delivery Method, a certificate
executed by a Responsible Officer, substantially in the form set forth in the
Form of Advance Request, certifying as to the amount of such deduction, provided that if the
aggregate amount of the Advances requested to be made on such Requested Advance
Date is less than the total amount to be deducted on such Requested Advance
Date, the Borrower shall deduct an amount equal to the total amount of the
Advance or Advances requested to be made on such date and the remaining
shortfall shall be deducted by the Borrower from Advances requested in future
Advance Requests made on future Requested Advance Dates until such amount has
been deducted in full.

    

    5.6           Satisfaction of Conditions
Precedent.  DOE hereby agrees that (x) by delivering the
Principal Instruments on the Principal Instrument Delivery Date, DOE shall be
deemed to have approved of or consented to, or to be satisfied with, each of the
matters set forth in Section 5.1 (Conditions Precedent to the
Principal Instrument Delivery Date) that must be approved or consented to
by, or be satisfactory to, DOE, and (y) FFB, by delivering an
acceptance notice under Section 5.1 of the Note Purchase Agreement or making any
Advance under the Note, shall be deemed to have approved of or consented to, or
to be satisfied with, each of the matters set forth in Section 5.1 or in Section
5.2 (Conditions Precedent to
FFB Purchase of the Notes) which must be approved or consented to by, or
satisfactory to, FFB.

    

    ARTICLE
VI

    

    REPRESENTATIONS
AND WARRANTIES

    OF THE
BORROWER

    

    To induce
DOE to enter into this Agreement and to arrange for FFB to purchase the Notes
and offer extensions of credit thereunder, the Borrower hereby represents and
warrants to and in favor of DOE and FFB that:

    

    
      
        
           

        

        
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    6.1           Financial
Condition.  The consolidated financial statements of the
Borrower included in its Annual Report on Form 10−K, for the twelve-month period
ended December 31, 2008 (the “2008 10−K”) and in its
Quarterly Report on Form 10−Q for the three-month period ended June 30, 2009
(the “Second Quarter 2009
10−Q”), each as amended on or before the Principal Instrument Delivery
Date and filed with the SEC, present fairly, in all material respects, in
accordance with GAAP, the financial condition and results of operations of the
Borrower and its Subsidiaries as of the end of, and for, (i) the twelve-month period
ended on December 31, 2008 and (ii) the three-month and
six-month periods ended June 30, 2009, respectively; provided that the foregoing
representation shall not be deemed to have been materially incorrect if, in the
event of a subsequent restatement of such financial statements, the changes
reflected in such restatement(s) are not materially adverse to the rights and
interests of DOE or FFB under the Transaction Documents (taking into account the
creditworthiness of the Borrower and its Subsidiaries, taken as a whole, and the
value of the Borrowing Base at such time).

    

    6.2           No
Change.  Between the date of filing with the SEC of the Second
Quarter 2009 10−Q and the Principal Instrument Delivery Date, there has been no
development or event which has had a Material Adverse Effect.

    

    6.3           Existence.  Each
Obligor (i) is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization, (ii) has the power and
authority to conduct the business in which it is engaged and (iii) is duly qualified and in
good standing in each jurisdiction where it is required to be so qualified and
in good standing, except to the extent all failures with respect to the
foregoing clauses (i), (ii) and (iii) could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect.

    

    6.4           Power; Authorization;
Enforceable Obligations.  Each Obligor has the requisite power
and authority to execute, deliver and perform its obligations under each
Transaction Document to which it is a party and has taken all necessary
corporate or other action to authorize the execution, delivery and performance
thereof and has duly executed and delivered each Transaction Document to which
it is a party and each such Transaction Document constitutes a legal, valid and
binding obligation of such Person enforceable against each such Person in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

    

    6.5           No Legal
Bar.  The execution, delivery and performance of this Agreement
and the other Transaction Documents, the issuance of the Notes, the borrowings
under the Funding Agreements, the use of the proceeds thereof and Reimbursement
Obligations hereunder will not violate any Requirement of Law or any Contractual
Obligation of any Obligor, except to the extent all such violations could not,
in the aggregate, reasonably be expected to have a Material Adverse
Effect.

    

    
      
        
           

        

        
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    6.6           Litigation.  Except
as set forth, or contemplated, in the 2008 10−K or the Second Quarter 2009 10−Q
filed with the SEC, no litigation, investigation, proceeding or arbitration is
pending, or to the best of the Borrower’s knowledge, is threatened against the
Borrower or any Significant Guarantor as of the Principal Instrument Delivery
Date that could reasonably be expected to have a Material Adverse
Effect.

    

    6.7           No
Default.  As of the Principal Instrument Delivery Date, neither
the Borrower nor any Significant Guarantor is in default under any of its
material Contractual Obligations, except where such default could not reasonably
be expected to have a Material Adverse Effect.

    

    6.8           Ownership of
Property.  As of the Principal Instrument Delivery Date, the
Borrower and each Initial Guarantor, as applicable, has title in fee simple to
the Mortgaged Property and has good title to all of its other property; provided that the foregoing
representation shall not be deemed to have been incorrect, if (i) the property with respect
to which the Borrower or a Guarantor cannot make such representation has a Net
Book Value of less than $250,000,000 or (ii) with respect to defects
in title to any real property, such defects could not reasonably be expected to
detract from the current use or operation of the affected real property in any
material respect.  In addition, to the extent that any defect in title
to any Mortgaged Property is insured against in any title insurance policy for
the benefit of the Existing Collateral Trustee, such defect shall not be taken
into account for purposes of the preceding sentence up to the amount of such
insurance coverage.

    

    6.9           Intellectual
Property.  As of the Principal Instrument Delivery Date, the
Borrower and each Initial Guarantor own, or are licensed to use, all
Intellectual Property necessary for the operation of their respective businesses
as currently conducted and as proposed to be conducted, except where the failure
to own or be licensed could not reasonably be expected to have a Material
Adverse Effect.

    

    6.10         Federal
Regulations.  No part of the proceeds of any Advance, and no
other extensions of credit under the Funding Agreements, will be used for any
purpose that violates the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System of the United States (or any
successor).

    

    6.11         ERISA.  Each
Plan, the Borrower and its Subsidiaries are in compliance with all material
provisions of ERISA and all material applicable provisions of the Code, except
to the extent that all failures to be in compliance could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

    

    
      
        
           

        

        
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    6.12         Investment Company
Act.  No Obligor is an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment
Company Act of 1940.

    

    6.13         Guarantors; Pledged
Equity.  As of the Principal Instrument Delivery Date, the
information set forth on Schedule 6.13(a) and Schedule 6.13(b) is true and
correct in all material respects; provided that the foregoing
representation shall not be deemed to be materially incorrect unless the failure
of such representation to be correct results in property having a having a Net
Book Value in excess of $250,000,000 being excluded from the Borrowing
Base.

    

    6.14         Security
Documents.

    

    (a)       The
Existing Collateral Security Agreement and each Mortgage is effective to create
in favor of the Existing Collateral Trustee, for the benefit of the Existing
Collateral Secured Parties, a legal, valid and enforceable security interest in
the Existing Collateral described therein; provided that the foregoing
representation shall not be deemed to have been incorrect if (i) such Existing Collateral
Security Documents are not effective with respect to Existing Collateral having
an aggregate Net Book Value of less than $250,000,000 or (ii) at any time after the
Principal Instrument Delivery Date, the Borrowing Base Coverage Ratio is at
least 1.25 to 1.00 (calculated on a pro forma basis assuming such Existing
Collateral for which the Existing Collateral Security Documents are not so
effective is excluded from the Borrowing Base).

    

    (b)       The
ATVM Collateral Security Agreement is effective to create in favor of the ATVM
Collateral Trustee, for the benefit of the ATVM Collateral Secured Parties, a
legal, valid and enforceable security interest in the Identified ATVM Collateral
described in the Asset Register (as updated prior to the date such
representation is made or deemed to be made) delivered by the Borrower prior to
any date upon which this representation is made or deemed made and as updated
prior to any date upon which this representation is made or deemed to be made;
provided that the
foregoing representation shall not be deemed to have been incorrect if such ATVM
Collateral Security Agreement is not effective with respect to ATVM Collateral
having an aggregate Net Book Value of less than $75,000,000.

    

    (c)       As
of the Principal Instrument Delivery Date, the Uniform Commercial Code financing
statements listed on Schedule 6.14(c), and the recordation of the Mortgages in
the recording offices listed on Schedule 1.1E to the Existing Credit Agreement,
all of which have been filed or recorded and copies of which have been delivered
to DOE prior to the date hereof, are all the filings, recordings and
registrations (other than filings required to be made in the United States
Patent and Trademark Office) that are necessary to establish a legal, valid and
perfected security interest in favor of the Existing Collateral Trustee (for the
benefit of the Existing Collateral Secured Parties) in respect of all Existing
Collateral in which the Lien granted pursuant to the Existing Collateral
Security Documents may be perfected by filing, recording or registering in the
United States (or any political subdivision thereof) and its territories and
possessions, and no further or subsequent filing, refiling, recording,
rerecording, registration or reregistration is necessary in any such
jurisdiction, except as provided under applicable law with respect to the filing
of continuation statements; provided that the foregoing
representation shall not be deemed to have been incorrect to the extent any
security interest is not perfected with respect to Existing Collateral having an
aggregate Net Book Value of less than $250,000,000.

    

    
      
        
           

        

        
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    (d)           The
filings, including the Uniform Commercial Code financing statements and the
filing, if any, of the ATVM Collateral Security Agreement or short form thereof
in the United States Copyright Office (the “USCO”), recordings and
registrations listed on Schedule 6.14(d) (as the same may be amended,
supplemented or updated by the Borrower from time to time with the consent of
DOE, such consent not to be unreasonably withheld, including updates to reflect
any addition of other filings, recordings or other steps to achieve perfection
with respect to additional categories of ATVM Collateral, if any, pursuant to
Section 7.4(j), provided that no such consent
shall be required in the case of (i) any such addition or
(ii) any amendment or
supplement necessary to cause the representation in this Section 6.14(d) to be
true and correct when made or required to be made), are all the filings,
recordings and registrations that are necessary to establish a legal, valid and
perfected security interest in favor of the ATVM Collateral Trustee (for the
benefit of the ATVM Collateral Secured Parties) in respect of all Identified
ATVM Collateral described in the Asset Register delivered by the Borrower prior
to any date upon which this representation is made or deemed to be made in which
the Lien granted pursuant to the ATVM Collateral Security Documents may be
perfected by filing, recording or registering in the United States (or any
political subdivision thereof) and its territories and possessions, and no
further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under
applicable law with respect to the filing of continuation statements, provided that the foregoing
representation shall not be deemed to have been incorrect to the extent such
security interests are not perfected with respect to Identified ATVM Collateral
having an aggregate Net Book Value of less than $75,000,000.

    

    6.15         Environmental
Laws.  The Borrower and each Mortgaged Property, and operations
thereon, are in compliance in all material respects with all applicable
Environmental Laws, except to the extent failure to comply would not reasonably
be expected to have a Material Adverse Effect.

    

    6.16         OFAC and USA PATRIOT
Act.

    

    (a)          None
of the Borrower, any other Obligor or any of their respective Subsidiaries is a
Prohibited Person, and the Borrower, each Obligor and all such Subsidiaries are
in compliance with all applicable published orders, rules and regulations of
OFAC.

    

    
      
        
           

        

        
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    (b)       Neither
the Borrower nor any other Obligor, nor any of their members, directors,
officers, parents or Subsidiaries:  (x) is subject to United
States or multilateral economic or trade sanctions in which the United States
participates; (y) is
owned or controlled by, or act on behalf of, any governments, corporations,
entities or individuals that are subject to United States or multilateral
economic or trade sanctions in which the United States participates; or (z) is a Prohibited Person or
is otherwise named, identified or described on any blocked persons list,
designated nationals list, denied persons list, entity list, debarred party
list, unverified list, sanctions list or other list of individuals or entities
with whom United States persons may not conduct business, including but not
limited to lists published or maintained by OFAC, lists published or maintained
by the U.S. Department of Commerce, and lists published or maintained by the
U.S. Department of State.

    

    (c)       None
of the Collateral is traded or used, directly or indirectly by a Prohibited
Person or by a Person organized in a Prohibited Jurisdiction.

     

    (d)       The
Borrower and each other Obligor has established an anti-money laundering
compliance program if and as required by the USA PATRIOT Act.

    

    6.17         Eligibility of Borrower,
Projects.  The Borrower is an Eligible Applicant and each
Project is an Eligible Project.

    

    6.18         Approvals, Permits and
Consents.  No permit, consent or authorization of, approval by,
notice to, filing with or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the construction,
operation or maintenance of any Project, except such permits, consents,
authorizations, approvals, notices or filings (i) the failure of which would
not be expected to materially affect the Borrower’s ability to construct,
operate or maintain the relevant Project or (ii) as have been obtained by
the Borrower and are in full force and effect.

    

    6.19         Compliance with Laws,
Program Requirements.  The Borrower and each other Obligor is
in compliance with (i)
all applicable Law (other than the Program Requirements) except to the extent
that the failure to comply therewith could not, in the aggregate, have a
Material Adverse Effect and (ii) all Program Requirements
with respect to each of the Projects.

    

    6.20         Project Business
Plan.  As of the Principal Instrument Delivery Date, the
Project Business Plan was prepared in good faith and on the basis of assumptions
that were reasonable on the Principal Instrument Delivery Date.

    

    
      
        
           

        

        
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    6.21         Federal
Funding.  Other than as set forth on Schedule 6.21, no
application has been delivered by the Borrower to, and no application is pending
review or approval by, any Governmental Authority for allocation of Federal
Funding to any Project.

    

    ARTICLE
VII

    

    AFFIRMATIVE
COVENANTS

    

    The
Borrower hereby agrees that until the date all of the Note A Obligations and the
Note B Obligations have been paid in full and the Loan Commitment Amount has
been reduced to zero:

    

    7.1           Amendments to Certain
Agreements.

    

    (a)       The
Borrower shall deliver to DOE, promptly following its having been submitted to
the lenders under the Existing Credit Agreement generally, copies of any
proposed amendment, modification or waiver under the Existing Credit Agreement
that is submitted to the lenders thereunder generally for their
approval.  Promptly following the effectiveness of any amendment,
modification or waiver of the Existing Credit Agreement, the Borrower shall
promptly, within four Business Days, deliver to DOE a copy of such amendment,
modification or waiver.

    

    (b)       Upon
entering into any amendment, modification or waiver of the Existing Credit
Agreement or any extension, renewal, replacement, refinancing or any other form
of refunding of the Existing Credit Agreement (a “Replacement Credit
Agreement”) or any amendment or other modification or waiver of any
Replacement Credit Agreement, in any such case (each being a “Modifying Agreement”)
pursuant to which any representations and warranties (other than representations
in Sections 6.14(b) (Security
Documents), 6.14(d), 6.16 (OFAC and USA PATRIOT Act),
6.17 (Eligibility of Borrower,
Projects), 6.18 (Approvals, Permits and
Consents), 6.19 (Compliance with Laws, Program
Requirements), 6.20 (Project Business Plan) and
6.21 (Federal
Funding)), covenants (other than this Section 7.1 and Sections 7.3(b)
(Maintenance of Property;
Insurance), 7.4(f) (Additional Collateral, Etc.),
7.4(h), 7.4(j), 7.5 (Use of
Proceeds), 7.6 (Books,
Records and Inspections), 7.7 (Approvals; Government
Approvals), 7.8 (Compliance with Program
Requirements), 7.9 (Advanced Technology
Vehicles), 7.10 (Davis-Bacon Act), 7.11 (Investment Earnings), 7.12
(Federal Funding), 7.13
(Borrower Project
Commitment), 8.2(a)(i)(B) (Reports) (unless the covenant
in Section 9.2 is eliminated or modified so as to make the certification
required under 8.2(a)(i)(B) no longer correspond to any such covenant), 8.2(b),
8.3(b) (Notices), 9.3(b) (Liens), 9.5(i) (Assets Acquired with Proceeds of any
Advance), 9.10 (Use of
Proceeds), 9.11 (Debarment), 9.12 (Public Statements), 9.13
(Limitation on Senior
Obligations) and 9.14 (Noneligible ATVM Project
Costs)) or events of default (other than 10.1(a) (Events of Default),
10.1(c)(i) (to the extent it relates to a breach of Section 9.11), 10.1(i) (to
the extent it relates to the ATVM Collateral Trust Agreement or any other ATVM
Collateral Security Document) and 10.1(l)) are changed, added or deleted (or any
equivalent or related provision or related definition is changed, added or
deleted), DOE and the Borrower shall, as promptly as practical following the
consummation of such Modifying Agreement (or, in the case of any such Modifying
Agreement whose effectiveness is conditioned upon the effectiveness of a
corresponding amendment, modification or waiver to this Agreement, as promptly
as practical following the Borrower’s having advised DOE of the provisions of
the proposed Modifying Agreement), enter into an amendment of this Agreement to
make corresponding changes or additions hereto in respect of representations and
warranties, covenants and events of default (and any equivalent or related
provision and related definition).

    

    
      
        
           

        

        
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    7.2           Maintenance of Business;
Existence.  The Borrower will continue to engage primarily in
the automotive business and preserve, renew and keep in full force and effect
its corporate existence and take all reasonable actions to maintain all rights
necessary for the normal conduct of its business, except to the extent that
failure to do so would not have a Material Adverse Effect.

    

    7.3           Maintenance of Property;
Insurance.

    

    (a)    
   The Borrower will, and will cause each Significant Guarantor
to, maintain, as appropriate, with insurance companies that the Borrower
believes (in the good faith judgment of the management of the Borrower) are
financially sound and responsible at the time the relevant coverage is placed or
renewed, insurance in amounts (after giving effect to any self insurance which
the Borrower believes (in the good faith judgment of management of the Borrower)
is reasonable and prudent in light of the size and nature of its business) and
against at least such risks (and with such risk retentions) as the Borrower
believes (in the good faith judgment of the management of the Borrower) are
reasonable in light of the size and nature of its business.

    

    (b)       The
Borrower shall (i)
designate DOE as an additional insured under the Borrower’s excess liability
insurance policy or policies to the extent the claim or loss relates directly or
indirectly to any Project and (ii) to the extent provided by
the Borrower to the lenders under the Existing Credit Agreement or any
Replacement Credit Agreement and not inconsistent with the rights of the holders
of Senior Obligations, designate DOE as loss payee under the Borrower’s property
and casualty insurance policy or policies.  In addition, the Borrower
shall cause a customary insurance certificate to be delivered to DOE evidencing
any such designation of DOE as an additional insured or loss payee, as the case
may be, under any such policy.

    

    
      
        
           

        

        
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    7.4      
    Additional Collateral,
Etc.

    

    (a)       Within
30 days after the formation or acquisition of any Additional Guarantor (or the
making of a single investment or a series of related investments having a value
(determined by reference to Net Book Value, in the case of an investment of
assets) of $500,000,000 or more in the aggregate by the Borrower or a Guarantor,
directly or indirectly, in a Domestic Subsidiary (other than an Excluded
Subsidiary) that is not a Guarantor that results in such Domestic Subsidiary
becoming an Additional Guarantor), the Borrower shall (or shall cause the
relevant Subsidiary to) (i) execute and deliver to the
Existing Collateral Trustee such amendments or supplements to the Existing
Collateral Security Agreement as the Administrative Agent deems necessary to
grant to the Existing Collateral Trustee, for the benefit of the Existing
Collateral Secured Parties, a perfected security interest in the Capital Stock
of such Additional Guarantor (or Domestic Subsidiary receiving such
investment(s)), (ii)
deliver to the Existing Collateral Trustee the certificates, if any,
representing such Capital Stock (to the extent constituting “certificated
securities” under the Uniform Commercial Code), together with undated stock
powers, in blank, executed and delivered by a duly authorized officer of the
relevant Existing Loan Party, and (iii) cause such Additional
Guarantor (or Domestic Subsidiary receiving such investment(s)) (A) to become a party to the
Existing Collateral Security Agreement, the Existing Collateral Trust Agreement
and the Guarantee, (B)
to take such actions as necessary to grant to the Existing Collateral Trustee
for the benefit of the Existing Collateral Secured Parties a valid, perfected
security interest in the Existing Collateral described in the Existing
Collateral Security Agreement with respect to such Additional Guarantor (or
Domestic Subsidiary receiving such investment(s)), including the filing of
Uniform Commercial Code financing statements in such jurisdictions as may be
required by law.

    

    (b)       Within
30 days after the formation or acquisition any new Foreign Subsidiary the
Capital Stock of which is owned directly by the Borrower or any Guarantor (other
than the Capital Stock of any Excluded Subsidiary or any other Subsidiary to the
extent the ownership interest in such Subsidiary has a Net Book Value of
$500,000,000 or less), the Borrower shall (or shall cause the relevant
Subsidiary to) promptly (i) execute and deliver to the
Administrative Agent such amendments or supplements to the Existing Collateral
Security Agreement as the Existing Collateral Trustee or the Administrative
Agent deems necessary to grant to the Existing Collateral Trustee, for the
benefit of the Existing Collateral Secured Parties, a perfected security
interest in a portion of the Capital Stock of such new Foreign Subsidiary that
is owned by the Borrower or such Guarantor (provided that in no event
shall more than 66% of the total outstanding Voting Stock of any such new
Foreign Subsidiary be required to be so pledged unless the Borrower in its sole
discretion otherwise agrees) and (ii) deliver to the Existing
Collateral Trustee the certificates, if any, representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the Borrower or the relevant Guarantor, and take such
other action as may be reasonably requested by the Existing Collateral Trustee
or the Administrative Agent in order to perfect the Existing Collateral
Trustee’s security interest therein (provided that in no event
shall such actions require the execution or delivery of a pledge agreement or
similar instrument governed by any law other than the laws of the State of New
York).

    

    
      
        
           

        

        
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    (c)       The
Borrower shall use its commercially reasonable efforts to (i) grant to the Existing
Collateral Trustee a security interest in the Capital Stock of any newly formed
or after acquired joint venture (or a holding company parent thereof) owned
directly by the Borrower or a Guarantor if the amount recorded by the Borrower
or such Guarantor as its investment in such joint venture exceeds $250,000,000
and (ii) in the case of
any domestic joint venture in which the Borrower directly or indirectly owns at
least 80% of the voting or economic interest, to cause such joint venture to
become a Guarantor (in each case, it being understood that such efforts shall
not require any economic or other significant concession with respect the terms
of such joint venture arrangements).

    

    (d)       Within
60 days of the occurrence thereof, the Borrower will notify the ATVM Collateral
Trustee and DOE of any changes to the name, jurisdiction of incorporation or
legal form of the Borrower or any Guarantor.

    

    (e)       If
Ford Motor Vehicle Assurance Company, LLC is not liquidated within six months of
the Financial Closing Date, the Borrower shall cause Ford Motor Vehicle
Assurance Company, LLC to execute the Guarantee and become a Guarantor
thereunder.

    

    (f)        Identification of
Collateral.

    

    (i)          
 No later than the last day of each calendar month until the first such
date following the date on which all ATVM Collateral consisting of capital
assets (x) has been
capitalized, (y) has
ceased to be owned by the Borrower or (z) has been written off by
the Borrower (such date, the “Final Equipment and Fixture
Identification Date”), in each case at least one month prior to such
date, the Borrower (A)
will deliver to the ATVM Collateral Trustee and DOE a copy of an updated Asset
Register identifying on the capital asset schedule of the Asset Register all
ATVM Collateral that had been capitalized as of the last day of the prior
calendar month (it being understood that this Section 7.4(f)(i) shall be
satisfied during the Availability Period by the delivery of an updated Asset
Register in connection with each Advance Request pursuant to Section 2.3 (Mechanics for Requesting
Advances)), (B)
will deliver to DOE a Collateral Release executed by the Administrative Agent
and the Existing Collateral Trustee with respect to such Asset Register, and
(C) upon delivery of
such Asset Register, shall be deemed to have made the representations in
Sections 6.14(b) and 6.14(d) (Security Documents) on such
date; provided that, on
the Final Equipment and Fixture Identification Date, the Borrower shall deliver
to DOE and the Collateral Trustee, by, in the case of DOE, an Acceptable
Delivery Method, a certificate executed by a Responsible Officer which shall be
substantially in the form of the document titled “Form of Certificate of Final
Equipment and Fixture Identification Date,” dated September 16, 2009 previously
submitted to and accepted by DOE.

    

    
      
        
           

        

        
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    (ii)           No
later than the last day of each calendar month until the first such date
following the date on which (x) all trade secrets or
inventions the Development of which was financed with the proceeds of Advances
that (I) have been
incorporated into a patent application filed with the United States Patent and
Trademark Office (the “PTO”) or (II) the Borrower has
determined that such trade secrets or inventions will not be incorporated into
any such application and (y) all copyrightable works
incorporated into engineering drawings or technical descriptions embodying or
illustrating trade secrets or inventions referred to in clause (x)(I) above,
which drawings or descriptions were created by the engineers who invented such
trade secrets or inventions (other than any such drawings or descriptions
included in any owners’ manuals, maintenance manuals or the like in any medium),
have been included in a copyright application filed with the USCO or the
Borrower has determined that such drawings and technical descriptions will not
be incorporated in any such application (such date, the “Final Intellectual Property
Identification Date”), the Borrower (A) will deliver to the ATVM
Collateral Trustee and DOE a copy of an updated Asset Register (1) identifying on the
intellectual property schedule of the Asset Register all ATVM Collateral
consisting of patents or patent applications that have been filed with the PTO
as of the last day of the prior calendar month and (2) identifying on the
intellectual property schedule of the Asset Register all copyrightable works for
which the Borrower intends to file a copyright application, as evidenced by
Borrower’s designation of such copyright for registration in its intellectual
property management system, and all copyright applications or copyright
registrations, in each case with respect to engineering drawings or technical
descriptions embodying or illustrating trade secrets or inventions incorporated
into patents or patent applications referred to in clause (A)(1) above, which drawings or
descriptions were created by the engineers who invented such trade secrets or
inventions (other than any such drawings or descriptions included in any owners’
manuals, maintenance manuals or the like in any medium) that have been filed
with the USCO as of the last day of the prior calendar month (it being
understood that this Section 7.4(f)(ii) shall be satisfied during the
Availability Period by the delivery of an updated Asset Register in connection
with each Advance Request pursuant to Section 2.3), (B) will deliver to DOE a
Collateral Release executed by the Administrative Agent and the Existing
Collateral Trustee with respect to such Asset Register, and (C) upon delivery of such
Asset Register, shall be deemed to have repeated the representations in Sections
6.14(b) and 6.14(d) on such date; provided that, on the Final
Intellectual Property Identification Date, the Borrower shall deliver to DOE and
the Collateral Trustee, by, in the case of DOE, an Acceptable Delivery Method, a
certificate executed by a Responsible Officer which shall be substantially in
the form of the document titled “Form of Certificate of Final Intellectual
Property Identification Date,” dated September 16, 2009 previously submitted to
and accepted by DOE.

    

    
      
        
           

        

        
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    (iii)          Subject
to Section 7.4(j) below, each Asset Register delivered pursuant to this Section
7.4 or delivered with an Advance Request pursuant to Section 2.3 shall Uniquely
Identify all Equipment and Fixtures the acquisition or Development of which, all
patents and patent applications the Development of which and all copyrights and
copyright applications with respect to all copyrightable works incorporated into
engineering drawings or technical descriptions embodying or illustrating trade
secrets or inventions included in any such patent or patent application, which
drawings or descriptions were created by the engineers who invented such trade
secrets or inventions (other than any such drawings or descriptions included in
any owners’ manuals, maintenance manuals or the like in any medium) has been
(or, in the case of an Asset Register delivered with an Advance Request, upon
the funding of the Advance or Advances requested in such Advance Request, will
have been) financed with the proceeds of Advances, in each case to the extent
that, as of the Calculation Date (in the case of Asset Registers delivered in
connection with an Advance Request) or the last day of the prior calendar month
(in the case of Asset Registers delivered pursuant to this Section 7.4) to which
such Asset Register relates, (x) in the case of Equipment
and Fixtures, such assets shall have been capitalized in accordance with the
Borrower’s then existing accounting policies, which accounting policies shall be
carried out in accordance with GAAP and (y) in the case of patents and
patent applications, copyright applications and copyright registrations, an
application shall have been filed with the PTO or USCO; provided that the foregoing
obligations shall not have been violated if Equipment, Fixtures, patents, patent
applications, copyrights or copyright applications that have not been so
Uniquely Identified have an aggregate Net Book Value of less than
$75,000,000.

    

    (g)       The
Borrower shall promptly take such steps as the Administrative Agent may
reasonably request in order to grant, preserve, protect and perfect the validity
and priority of the security interests created or intended to be created in the
Existing Collateral. Notwithstanding anything to the contrary herein or in any
other Transaction Document, neither the Borrower nor any Guarantor shall be
required to perfect the security interests granted by it in any Existing
Collateral by any means other than by (i) execution, delivery
and recordation of a Mortgage, (ii) filings pursuant to the
Uniform Commercial Code of the relevant State(s) (including with respect to
fixtures covered by any Mortgage) or equivalent filings under local
jurisdictions to the extent required with respect to the pledge of the Capital
Stock of any member of the Restricted Pledgee Group, (iii) delivery to the Existing
Collateral Trustee to be held in its possession of each promissory note listed
on Schedule 5.1(g) to the Existing Credit Agreement and Schedule 7.4 hereto,
together with an undated endorsement for each such promissory note executed in
blank by a duly authorized officer of the pledgor thereof, and, to the extent
certificated and constituting “certificated securities” under the Uniform
Commercial Code, Capital Stock listed on Schedule 4.13 to the Existing Credit
Agreement, Schedule 6.13(b) hereto or required to be pledged pursuant to Section
6.7(a) of the Existing Credit Agreement, together with an undated stock power
for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof, (iv)
delivery of each other promissory note or certificated Capital Stock and
constituting “certificated securities” under the Uniform Commercial Code
constituting Collateral to the extent such promissory note evidences
Indebtedness, or such Capital Stock has a Net Book Value, in excess of
$250,000,000, together with an undated endorsement or stock power for each such
promissory note or certificate, as applicable, executed in blank by a duly
authorized officer of the pledgor thereof and (v) filing with the United
States Patent and Trademark Office against trademarks listed on Schedule 1.1F to
the Existing Credit Agreement.

    

    
      
        
           

        

        
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    (h)       The
Borrower shall promptly take such steps as DOE may reasonably request in order
to grant, preserve, protect and perfect the validity and priority of the
security interests created or intended to be created in the ATVM
Collateral.  Notwithstanding anything to the contrary herein or in any
other Loan Document, neither the Borrower nor any Guarantor shall be required to
perfect the security interests granted by it in any ATVM Collateral by any means
other than by (i)
filings pursuant to the Uniform Commercial Code of the relevant State(s),
including fixture filings and any other financing statement with respect to
fixtures and any financing statement amendments required to perfect the
first-priority Lien over all Identified ATVM Collateral set forth on any Asset
Register, (ii) filings
with the USCO against any copyright or copyright applications in respect of
engineering drawings or technical descriptions embodying or illustrating the
trade secrets or inventions included in a patent or patent application included
in the ATVM Collateral, which drawings or descriptions were created by the
engineers who invented such trade secrets or inventions (other than any such
drawings or descriptions included in any owners’ manuals, maintenance manuals or
the like in any medium), (iii) in the event the
Borrower acquires or Develops any real property with the proceeds of any
Advance, execution, delivery and recordation of a mortgage against such real
property and (iv) any
additional steps required with respect to additional categories of ATVM
Collateral pursuant to Section 7.4(j).

    

    (i)        If
any Subsidiary, other than a Guarantor, guarantees the Existing Credit
Agreement, the Borrower shall promptly cause such Subsidiary to become a
guarantor under the Guarantee.

    

    
      
        
           

        

        
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    (j)        If,
at any time, the Borrower proposes to (i) acquire or Develop, with
the proceeds of any Advances, any assets or property (other than patents) having
an aggregate value in excess of $5,000,000, which assets fall outside the
categories of assets in which a security interest is granted under the then
outstanding ATVM Collateral Security Documents (the “Non-Pledged Asset Classes”)
or (ii) acquire any
patents having an aggregate value in excess of $2,500,000 with the proceeds of
any Advances, the Borrower shall promptly, but in any event not later than 30
days thereafter, (w)
notify DOE thereof, (x) enter into such
amendments to the ATVM Collateral Security Documents, or enter into additional
ATVM Collateral Security Documents, as shall be reasonably requested by DOE in
order to grant a legal and valid security interest in such assets, (y) take such additional
steps, if any, as DOE shall reasonably request that are necessary to,
appropriate or desirable to fully perfect such security interest, provided that if such
security interest can be perfected by the filing of Uniform Commercial Code
financing statements (including any fixture filings), no additional or further
steps in respect of perfecting such security interest shall be required and
(z) in the case of any
additional class or classes of assets with a value in excess of $25,000,000,
deliver legal opinions from counsel, reasonably satisfactory to DOE, with
respect to the validity and perfection of such security interest.

    

    7.5           Use of
Proceeds.  The proceeds of each Advance will be used by the
Borrower for the reimbursement of Eligible Project Costs paid by the Borrower in
connection with each Project.  Neither DOE nor FFB shall have any
responsibility as to the use of any proceeds of any Advance.

    

    7.6           Books, Records and
Inspections.

    

    (a)       The
Borrower shall keep proper records and books of account, in which entries are
correct and accurate in all material respects and sufficient to prepare
financial statements in accordance with GAAP and facilitate the effective and
accurate audit and performance evaluation of the Projects pursuant to the
Program Requirements;

    

    (b)          The
Borrower shall consult and cooperate with DOE and FFB regarding each of the
Projects upon their request and shall permit officers and designated
representatives of DOE, FFB or the United States Comptroller General to visit
and inspect any Project and any other facilities and properties of the Borrower
and any pertinent books, documents, papers and records of Borrower for the
purpose of audit, examination, inspection and monitoring at any reasonable time
during normal business hours, and to examine and discuss the affairs, finances
and accounts of the Borrower with the officers of the Borrower.  The
Borrower shall afford proper facilities for such inspection, shall make copies
(at Borrower’s expense) of any records that are subject to such inspection,
shall make available all information related to each Project, including all
patents, technology and proprietary rights owned or controlled by Borrower and
utilized in the construction, startup or operation of the Projects, and shall
permit the taking of samples as may be reasonably necessary in order to
determine the technical progress, soundness of financial condition, management
stability, compliance with environmental requirements, adequacy of health and
safety conditions, and all other matters with respect to the
Projects.

    

    
      
        
           

        

        
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    (c)       The
Borrower shall authorize the Borrower’s Independent Auditor to communicate
directly with DOE, FFB and the United States Comptroller General at any time
regarding any Agreed-Upon Procedures Report and the Borrower’s accounts and
operations relating thereto;

    

    (d)       In
the event that the Borrower’s Independent Auditor should cease to be the
accountants of the Borrower for any reason, the Borrower shall appoint and
maintain as the Borrower’s Independent Auditor another firm of independent
public accountants, which firm shall be authorized by the SEC to audit the books
and records of a corporation listed on the New York Stock Exchange;
and

    

    (e)       The
Borrower shall retain all records relating to expenditures with respect to which
Advances were made for five years after the Advances were made with respect to
such expenditure.

    

    7.7           Approvals; Government
Approvals.  The Borrower shall obtain on a timely basis and
thereafter maintain, or cause to be maintained, in good legal standing and
validity all permits, licenses, approvals and consents (including Governmental
Approvals) necessary to ensure completion and normal operation of each Project,
except to the extent such failure to obtain or maintain any such permits,
licenses, approvals or consents could not reasonably result in a Material
Adverse Effect.

    

    7.8           Compliance with Program
Requirements.  The Borrower shall comply with all Program
Requirements in connection with each of the Projects.

    

    7.9           Advanced Technology
Vehicles.  The Borrower shall, in accordance with the
Application and the Project Business Plan, develop, manufacture, assemble and
introduce advanced technology vehicles (as defined in the Applicable
Regulations) and components as necessary to meet or exceed the overall annual
fuel economy improvements projected by the Borrower in the Application and the
current Project Business Plan for the Borrower’s vehicles manufactured,
assembled and/or sold in the United States.

    

    7.10         Davis-Bacon
Act.  The Borrower shall comply with the provisions of the
Davis-Bacon Act and any applicable rules and regulations promulgated pursuant
thereto, including the obligation to pay or cause to be paid prevailing wages to
all laborers and mechanics employed by its contractors or subcontractors during
the construction, alteration or repair of assets that are financed with the
proceeds of any Advances.

    

    
      
        
           

        

        
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    7.11         Investment
Earnings.  The Borrower shall return to DOE or FFB, as
applicable, any earnings from any investment (whether from the acquisition of
any stocks, notes or other securities or obligations, or from any other source)
realized by the Borrower in connection with the Borrower’s use of the proceeds
of any Advances, whether or not such use is permitted under the terms of this
Agreement or the Program Requirements, to the extent such proceeds exceed the
accrued interest expense due and payable by the Borrower pursuant to the Loan
Documents, it being understood that, to the extent that Advances are funded to
reimburse the Borrower for Eligible Project Costs paid by the Borrower prior to
the funding of such Advances, this Section 7.11 shall not apply to any earnings
on investments made with such proceeds.

    

    7.12         Federal
Funding.  Promptly, but in no event later than 15 days after
the Borrower obtains knowledge thereof, the Borrower shall deliver to DOE notice
of (i) the Potential
Grant Funded Eligible Project Costs that have been or are to be 50% funded with
the proceeds of the Grant (such portion the “Grant Funded Eligible Project
Costs”), and identifying the remaining 50% portion of such Potential
Grant Funded Eligible Project Costs that are not to be funded with the proceeds
of the Grant (such portion together with the Grant Funded Eligible Project
Costs, the “Noneligible ATVM
Project Costs”) and (ii) any additional Eligible
Project Costs that under the current Project Business Plan would not be funded
out of Loan proceeds that the Borrower anticipates will be incurred during the
Availability Period (“Proposed
Substitute Eligible Project Costs”) that the Borrower proposes to
substitute for any Noneligible ATVM Project Costs.  On the next
Quarterly Reporting Date following any such notice, the Borrower shall provide
DOE with a revised Project Business Plan reflecting the deletion from such
Project Business Plan of such Noneligible ATVM Project Costs and the addition to
such Project Business Plan of such Proposed Substitute Eligible Project
Costs.  DOE shall have the right, in its sole discretion, to approve
such Proposed Substitute Eligible Project Costs.

    

    7.13         Borrower Project
Commitment.  As of each Calculation Date, the aggregate amount
of all Eligible Project Costs paid by the Borrower with respect to each Project
out of funds other than proceeds of any Advances or Federal Funding (such
payments, “Borrower Project
Payments”) on or prior to such Calculation Date shall be at least equal
to the sum of, without duplication, (i) the greater of (x) 20% of the aggregate
amount of Eligible Project Costs (other than Cost Overruns and including Total
Pre-Availability Period Eligible Project Costs) paid by the Borrower with
respect to such Project on or prior to such Calculation Date and (y) 100% of the Total
Pre-Availability Period Eligible Project Costs paid by the Borrower with respect
to such Project, plus
(ii) the aggregate
amount of Cost Overruns paid on or prior to such Calculation Date with respect
to such Project (such sum, the “Borrower Project Commitment”
with respect to such Project).

    

    
      
        
           

        

        
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    ARTICLE
VIII

    

    INFORMATION
COVENANTS

    

    The
Borrower hereby agrees that until the date all of the Note A Obligations and the
Note B Obligations have been paid in full and the Loan Commitment Amount has
been reduced to zero:

    

    8.1           Financial
Statements.

    

    (a)       Borrower Financial
Statements.  The Borrower shall deliver to DOE, audited annual
financial statements and unaudited quarterly financial statements of the
Borrower within 15 days after the Borrower is required to file the same with the
SEC pursuant to Section 13 or Section 15(d) of the Exchange Act (or, if the
Borrower is not required to file annual financial statements or unaudited
quarterly financial statements with the SEC pursuant to Section 13 or Section
15(d) of the Exchange Act, then within 15 days after the Borrower would be
required to file the same with the SEC pursuant to Section 13 or Section 15(d)
of the Exchange Act if it had a security listed and registered on a national
securities exchange); provided, that the foregoing
time period shall automatically be extended to the earlier of (i) the date that is five days
prior to the date of the occurrence of any “event of default” (or any comparable
term) under any of the Existing Notes as a result of the failure by the Borrower
to provide annual or quarterly financial statements to the extent required under
the related Existing Notes Indenture and (ii) in the case of audited
annual financial statements, within 240 days after the end of the Borrower’s
fiscal year, and in the case of unaudited quarterly financial statements, within
220 days after the end of each of the first three quarterly periods of each
fiscal year; provided,
further, that the such financial statements shall be deemed to be delivered upon
the filing with the SEC of the Borrower’s Form 10−K or Form 10−Q for the
relevant fiscal period.

    

    (b)       Subsidiary Financial
Statements.  The Borrower shall deliver (i) statutory audited
consolidated annual financial statements for each of FMCC, Ford South Africa and
Volvo, (ii) statutory
audited annual financial statements for each of Ford Argentina, Ford Canada,
Grupo Ford and Ford Mexico and (iii) during any period when
the Capital Stock of any other Foreign Pledgee has an Eligible Value of greater
than $0, the statutory audited annual financial statements for such Foreign
Pledgee (commencing with the statements that have been used as the basis for
such Eligible Value), in each case under clause (i), (ii) or (iii) above
promptly after the same become available and only to the extent the Borrower has
delivered to the Administrative Agent, or is required to deliver, such financial
statements under the Existing Credit Agreement; provided that, if any such
financial statements are not delivered within 240 days after the end the fiscal
year of the relevant Subsidiary, the Eligible Value of the Capital Stock of such
Person (or, in the case of Grupo Ford, the Eligible Value of the Grupo Ford
Intercompany Note) shall be deducted from the Borrowing Base until such
statements have been delivered to the Administrative Agent, but the failure to
deliver such financial statements shall not otherwise constitute a Default or an
Event of Default hereunder.

    

    
      
        
           

        

        
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    8.2           Reports.  At
its own expense the Borrower shall furnish or cause to be furnished to DOE, by
an Acceptable Delivery Method, and if requested by FFB or DOE on behalf of FFB,
to FFB by facsimile, with a reproduction of the signatures where required, the
following items:

    

    (a)       Compliance and Borrowing
Base Certificates.

    

    (i)         
  concurrently with the delivery of any financial statements pursuant
to Section 8.1 (Borrower
Financial Statements), a Compliance Certificate of a Responsible Officer
(x) stating that, to
the best of such Responsible Officer’s knowledge, no Default or Event of Default
has occurred and is continuing as of the date of such certificate, except as
specified in such certificate; and (y) (A) unless the lesser of
(1) the Total
Available Revolving Commitment (including any unused commitment under any
Incremental Revolving Facility or any Permitted Additional Senior Facility) and
(2) the excess of
(i) the Borrowing
Base as of such date over (ii) the Borrowing Base
Debt at such date is equal to or greater than $4,000,000,000, containing a
calculation of Available Liquidity as of the last day of the fiscal period
covered by such financial statements or (B) if the lesser of (1) the Total Available
Revolving Commitment (including any unused commitment under any Incremental
Revolving Facility or any Permitted Additional Senior Facility) and (2) the excess of (i) the Borrowing Base as
of such date over (ii) the Borrowing Base
Debt at such date is equal to or greater than $4,000,000,000, containing a
certification that Available Liquidity as of the last day of the fiscal period
covered by such financial statements is equal to or greater than $4,000,000,000;
and

    

    (ii)           simultaneously
with delivery thereof to the Administrative Agent pursuant to Section 6.3 of the
Existing Credit Agreement, a copy of the Borrowing Base
Certificate;

    

    (b)       Reports; Project Business
Plan and Additional Information.

    

    (i)         
  Quarterly
Progress Report.  on or prior to the 15th day
of each February, May, August and November (each a “Quarterly Reporting Date”), a
quarterly progress report for each Project, in substantially the form of the
document titled “Quarterly Progress Report,” dated as of August 18, 2009,
previously submitted to and accepted by DOE, setting forth for each Project and
each related Sub-Program of each such Project (x) the financial performance
for the immediately preceding fiscal quarter for each Project or Sub-Program of
each such Project and (y) certification by the
Borrower of the achievement of any Post-Program Approval Timing Milestones with
respect of each Project or Sub-Program of each such Project during the
immediately preceding fiscal quarter;

    

    
      
        
           

        

        
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    (ii)           Revised Project Business
Plan.  on or prior to the next Quarterly Reporting Date,
following the receipt of Program Approval for any Project or any Sub-Program
thereof, a revised Project Business Plan, together with the next quarterly
report required to be submitted to DOE under subsection (i), setting forth the
updated Project Targets, including updated Timing Milestones (the “Post-Program Approval Timing
Milestones”) with respect to such Project or any
Sub-Program;

    

    (iii)          Semiannual Progress
Report.  on or prior to the 15th day
of each February and August (each a “Semiannual Reporting Date”),
a semiannual progress report, in substantially the form of the document titled
“Semiannual Progress Report,” dated as of August 18, 2009, previously submitted
to and accepted by DOE, setting forth for each Project and each related
Sub-Program (x) the
Fuel Economy Status for such Project or Sub-Program as at the end of such
semi-annual period, (y)
the anticipated Program Approval Date for any Project or Sub-Program that has
not received Program Approval and (z) the Technology Components
comprising each such Project or Sub-Program;

    

    (iv)          Agreed-Upon Procedures
Report.  on or prior to November 30, 2009 (with respect to the
initial Advance Request) and thereafter on or prior to the last day of each
March, June, September and December thereafter, a report, in substantially the
form of the document titled “Agreed-Upon Procedures Report,” dated September 16,
2009, previously submitted to and accepted by DOE, as such form may be revised
from time to time by the Borrower and the Independent Auditor with the consent
of DOE, which consent shall not be unreasonably withheld (an “Agreed-Upon Procedures
Report”), prepared by the Independent Auditor;

    

    (v)           Noncompliant
Projects.  if, as of any Quarterly Reporting Date, any Project
is a Noncompliant Project, a detailed description of the Borrower’s intentions
with respect to such Project, which may include, at the election of the
Borrower, a proposal to DOE to modify the Project Targets set forth in the
Project Business Plan with respect to such Noncompliant Project, provided that such
modification may be accepted or rejected by DOE, in its sole discretion and, if
accepted by DOE, the Project Business Plan shall be modified accordingly;
and

    

    (vi)          Additional
Information.  promptly upon request, such information or
documents relating to any Project as DOE or FFB may reasonably
request.

    

    
      
        
           

        

        
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    8.3           Notices.

    

    (a)       Defaults.  Promptly
upon a Responsible Officer of the Borrower becoming aware thereof, the Borrower
will give notice in Electronic Format to DOE of the occurrence of any Default or
Event of Default.  Each notice pursuant to this Section shall be
accompanied by a statement of a Responsible Officer setting forth details of the
occurrence referred to therein and stating what action the Borrower or the
relevant Subsidiary proposes to take with respect thereto.

    

    (b)       Debarment.  The
Borrower shall provide immediate written notice in Electronic Format (including
a brief description) to DOE if at any time a Responsible Officer of the Borrower
becomes aware that the representations made with respect to Debarment
Regulations were erroneous when made or have become erroneous by reason of
changed circumstances.

    

    ARTICLE
IX

    

    NEGATIVE
COVENANTS

    

    The
Borrower hereby agrees that until the date all of the Note A Obligations and
Note B Obligations have been paid in full and the Loan Commitment Amount has
been reduced to zero:

    

    9.1           Borrowing
Base.  The Borrower shall not permit the Outstanding Amount of
Borrowing Base Debt at any time to exceed the Borrowing Base in effect at such
time for any period of five consecutive Business Days.

    

    9.2           Available
Liquidity.  The Borrower shall not permit Available Liquidity
to be less than $4,000,000,000 at any time.

    

    9.3           Liens.

    

    (a)       Prior
to the Existing Collateral Release Date, the Borrower will not, nor will it
permit any Guarantor to, create, incur, assume or suffer to exist any Lien upon
any of the Existing Collateral except Existing Collateral Permitted
Liens.

    

    (b)       Prior
to the ATVM Collateral Release Date, the Borrower will not, nor will it permit
any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of
the ATVM Collateral, except ATVM Collateral Permitted Liens.

    

    9.4           Restricted Group
Debt.  Prior to the Existing Collateral Release Date, none of
Volvo, any of its Subsidiaries or any member of the Restricted Pledgee Group
will incur Indebtedness or provide a Material Guarantee, except:

    

    
      
        
           

        

        
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    (a)       Indebtedness
of the type described in clause (g) of the definition of Existing Collateral
Permitted Liens;

    

    (b)       Indebtedness
incurred under working capital facilities entered into in the ordinary course of
business;

    

    (c)       Indebtedness
owing to the Borrower or any Subsidiary; provided that any such
Indebtedness owing to a Subsidiary that is not a Guarantor shall be subordinated
in right of payment to any Indebtedness owing by Volvo or any of its
Subsidiaries or such member of the Restricted Pledgee Group to the Borrower or
any Guarantor;

    

    (d)       Indebtedness
consisting of subsidized loans made, or guaranteed, by a governmental or quasi
governmental entity (including any international organization or
agency);

    

    (e)       Indebtedness
outstanding as of the Existing Credit Agreement Closing Date and any Permitted
Refinancing thereof;

    

    (f)        in
the case of any member of the Restricted Pledgee Group, any additional
Indebtedness; provided
that (i) the Borrowing
Base Coverage Ratio after giving pro forma effect to the incurrence and
application of proceeds thereof is at least 1.15 to 1.00 and (ii) any dividends received by
the Borrower from the proceeds of any such Indebtedness in excess of
$250,000,000 are reinvested in the Borrower’s business within 15 months or, to
the extent not so reinvested are, unless such Credit Agreement Mandatory
Prepayment Event shall have been waived, applied as a Credit Agreement Mandatory
Prepayment Event pursuant to Section 2.18(a) of the Existing Credit Agreement;
and

    

    (g)       in
the case of Volvo and its Subsidiaries, additional Material Guarantees and
Indebtedness in an Outstanding Amount with respect to all such Material
Guarantees and Indebtedness not to exceed $1,000,000,000 at any
time;

    

    provided, in each case, that
the Outstanding Amount of such Indebtedness or Material Guarantees shall reduce
the Eligible Value (but not below zero) of the Capital Stock or intercompany
notes of such Person that constitute Existing Collateral as provided in Schedule
1.1B to the Existing Credit Agreement.

    

    9.5           Asset Sale
Restrictions.

    

    (a)       Receivables and
Inventory.  The Borrower shall not, and shall not permit any
Guarantor to, Dispose of any receivables or inventory included in the Borrowing
Base, except in the ordinary course of business.

    

    
      
        
           

        

        
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    (b)       Non-Core
Assets.  The Borrower shall not, nor shall it permit any
Subsidiary to, Dispose of all or any portion of the Capital Stock (including by
way of merger), or all or substantially all of the assets, of Automotive
Components Holdings, and/or Automobile Protection Corp. unless in either case,
the Net Cash Proceeds thereof are reinvested in the business of the Borrower
within 15 months of such Disposition or, to the extent not so reinvested are,
unless such Credit Agreement Mandatory Prepayment Event shall have been waived,
applied as a Credit Agreement Mandatory Prepayment Event pursuant to Section
2.18(a) of the Existing Credit Agreement.

    

    (c)       Volvo.  The
Borrower shall not, nor shall it permit any Subsidiary to, Dispose of (i) all or any portion of the
Capital Stock (including by way of merger) or to Dispose of (other than in the
ordinary course of business or to another Subsidiary or the Borrower) more than
20% of the then Consolidated Total Assets of Volvo (initially determined based
upon the audited financial statements of Volvo for the fiscal year ending
December 31, 2008 and, commencing with the delivery of financial statements of
Volvo delivered pursuant to Section 8.1(b) (Financial Statements), based
upon the most recent consolidated balance sheet of Volvo contained therein) in a
single transaction or a series of related transactions, unless (1) after giving pro forma
effect to such Disposition and the application of proceeds thereof, the
Borrowing Base Coverage Ratio is at least 1.25 to 1.00, (2) the greater of (A) 50% of the Net Cash
Proceeds thereof and (B) the amount of such
proceeds necessary so that, after giving pro forma effect to such Disposition
and application of proceeds thereof, the Borrowing Base Coverage Ratio is at
least 1.25 to 1.00, are, unless such Credit Agreement Mandatory Prepayment Event
shall have been waived, applied to prepay the Existing Credit Agreement pursuant
to Section 2.18(a) of the Existing Credit Agreement and (3) the remaining Net Cash
Proceeds of such Disposition are reinvested in the business of the Borrower
within 15 months of such Disposition or, to the extent not so reinvested are,
unless such Credit Agreement Mandatory Prepayment Event shall have been waived,
applied as a Credit Agreement Mandatory Prepayment Event pursuant to Section
2.18(a) of the Existing Credit Agreement or (ii) the Volvo Trade Name
except in connection with a Disposition of all or substantially all of the
Capital Stock or assets of Volvo.

    

    (d)       Ford Motor
Credit.  The Borrower shall not permit any Disposition or
issuance of the Capital Stock of FMCC that results in the Borrower owning,
directly or indirectly, less than 49% of the outstanding Capital Stock of FMCC.
The Borrower shall not permit any other Disposition or issuance of the Capital
Stock of FMCC unless (i) in the case of a primary
offering of Capital Stock of FMCC, the Net Cash Proceeds of such Disposition are
reinvested in the business of FMCC within 15 months of such Disposition or, to
the extent not so reinvested are, unless such Credit Agreement Mandatory
Prepayment Event shall have been waived, applied as a Credit Agreement Mandatory
Prepayment Event pursuant to Section 2.18(a) of the Existing Credit Agreement
and (ii) in the case of
a Disposition of the Capital Stock of FMCC by the Borrower or any Subsidiary
thereof, the Net Cash Proceeds thereof in an amount equal to the product of the
Eligible Value of such Capital Stock constituting Eligible FMCC Pledged Equity
and the Advance Percentage therefor as set forth in the most recent Borrowing
Base Certificate delivered to the Administrative Agent are, unless such Credit
Agreement Mandatory Prepayment Event shall have been waived, applied as a Credit
Agreement Mandatory Prepayment Event pursuant to Section 2.18(a) of the Existing
Credit Agreement.

    

    
      
        
           

        

        
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    (e)       Ford Global
Technologies.  The Borrower shall not permit the Disposition of
all or any portion of the Capital Stock (including by way of merger), or all or
substantially all of the assets, of Ford Global Technologies, LLC, except
pursuant to Section 7.7(b)(i) of the Existing Credit Agreement.

    

    (f)        Principal Trade
Names. The Borrower shall not Dispose of any Principal Trade
Name.

    

    (g)       Other Principal Trade
Names.  The Borrower shall not Dispose of any Other Principal
Trade Name unless (i)
after giving pro forma effect to such Disposition and the application of
proceeds thereof, the Borrowing Base Coverage Ratio is at least 1.00 to 1.00 and
(ii) the greater of
(1) 50% of the Net Cash
Proceeds thereof and (2) the amount of such
proceeds necessary so that, after giving pro forma effect to such Disposition
and application of proceeds thereof, the Borrowing Base Coverage Ratio is at
least 1.00 to 1.00, are, unless such Credit Agreement Mandatory Prepayment Event
shall have been waived, applied as a Credit Agreement Mandatory Prepayment Event
pursuant to Section 2.18(a) of the Existing Credit Agreement.

    

    (h)       Material
PDMP.  The Borrower shall not, nor shall it permit, any
Guarantor to Dispose of any PDMP having a Net Book Value in excess of
$250,000,000 in a single transaction or a series of related transactions unless
(i) after giving pro
forma effect to such Disposition and the application of proceeds thereof, the
Borrowing Base Coverage Ratio is at least 1.00 to 1.00 and (ii) the Eligible Value of the
Eligible PDMP PP&E is reduced as provided in Schedule 1.1B to the Existing
Credit Agreement.

    

    (i)       
Assets Acquired with
Proceeds of any Advance.  The Borrower shall not, nor shall it
permit any Subsidiary to, Dispose of any assets acquired or Developed with the
proceeds of any Advances, unless (A) in the case of a
Disposition to a Subsidiary, the consideration for such Disposition is based on
the Net Book Value of such assets or the fair market value of such assets and
(B) the Net Cash
Proceeds received by the Borrower from the proceeds of any such Disposition are
reinvested in the Borrower’s business in accordance with the term of Section
3.6(c)(i) or applied as Mandatory Prepayments pursuant to Section
3.6(c)(i).

    

    (j)        Other Material
Assets.  The Borrower shall not, nor shall it permit any
Guarantor to Dispose of any other Existing Collateral not otherwise covered in
paragraphs (a) through (h) above (other than in the ordinary course of business)
having a Net Book Value equal to or greater than $500,000,000 in a single
transaction or a series of related transactions unless (i) after giving pro forma
effect to such Disposition and the application of proceeds therefrom, the
Borrowing Base Coverage Ratio is at least 1.15 to 1.00 and (ii) the Net Cash Proceeds
thereof are reinvested in the business of the Borrower within 15 months of such
Disposition or, if not so reinvested are, unless such Credit Agreement Mandatory
Prepayment Event shall have been waived, applied as a Credit Agreement Mandatory
Prepayment Event pursuant to Section 2.18(a) of the Existing Credit
Agreement.

    

    
      
        
           

        

        
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    Notwithstanding
anything in this Section 9.5 to the contrary, (i) any Disposition described
in paragraphs (b), (c), (g), (h), or (j) above shall be permitted if (1) 100% of the Net Cash
Proceeds of such Disposition are applied as a Credit Agreement Mandatory
Prepayment pursuant to Section 2.18(a) of the Existing Credit Agreement and
(2) at least 75% of the
consideration for such Disposition is in the form of cash or cash equivalents,
(ii) any Disposition
described in paragraph (i) above that is made to a Subsidiary of the Borrower
shall be permitted only if 100% of the consideration for such Disposition is in
the form of cash or cash equivalents (including, for this purpose, and for
purposes of Section 3.6(c)(i) and the definition of Specified ATVM Collateral
Disposition, adjustments to inter-company balances outstanding between the
Borrower and such Subsidiary) and (iii) any Disposition
described in this Section 9.5 shall be permitted if such Disposition is (1) to the Borrower, (2) except in the case of
paragraph (i), any Guarantor or (3) in the case of paragraph
(b), any wholly owned Subsidiary of the Borrower.  In addition, it is
understood that the Borrower and its Subsidiaries may otherwise Dispose of their
assets except to the extent expressly restricted pursuant to this Section 9.5
and Sections 9.7 (Fundamental
Changes) and 9.9 (Sales
and Leasebacks).

    

    9.6           Restricted
Payments.  The Borrower will not (i) pay any dividend (other
than dividends payable solely in stock of the Borrower) on, or redeem, retire or
purchase, for cash consideration, its common stock (including any Class B stock,
“Common Stock”), (ii) optionally prepay,
repurchase, redeem or otherwise optionally satisfy or defease with cash or cash
equivalents any Material Unsecured Indebtedness and (iii) so long any Advances (or
any secured refinancing thereof) are outstanding, make any cash payments to
holders of convertible debt securities with respect to the conversion value of
any convertible debt securities upon the conversion thereof (any such payment
referred to in clauses (i), (ii) and (iii), a “Restricted Payment”), other
than:

    

    (a)       repurchases
of shares of Common Stock upon the exercise of stock options or warrants for
such Common Stock;

    

    (b)       repurchases
of shares of Common Stock from officers, directors and employees or any
executive or employee savings or compensation plans;

    

    
      
        
           

        

        
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    (c)       derivatives
or forward purchase agreements entered into to hedge obligations to repurchase
Capital Stock under paragraphs (a) and (b) of this Section 9.6 or in connection
with the issuance of convertible debt securities;

    

    (d)       any
Permitted Refinancing of Material Unsecured Indebtedness; provided that a certificate
of a Responsible Officer of the Borrower is delivered to DOE, by an Acceptable
Delivery Method, at least five Business Days (or such shorter period as DOE may
reasonably agree) prior to the incurrence of such Indebtedness, together with a
reasonably detailed description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating thereto, stating that the
Borrower has determined in good faith that such terms and conditions satisfy the
foregoing requirement and such terms and conditions shall be deemed to satisfy
the foregoing requirement unless DOE notifies the Borrower within such period
that it disagrees with such determination (including a reasonable description of
the basis upon which it disagrees);

    

    (e)       any
Restricted Payments constituting redemption or other prepayment of Material
Unsecured Indebtedness having a scheduled final maturity prior to the Maturity
Date; provided that
such redemption or prepayment occurs no earlier than the date that is six months
prior to such scheduled final maturity;

    

    (f)        additional
Restricted Payments in an aggregate amount not to exceed $250,000,000 during any
fiscal year and $500,000,000 in the aggregate;

    

    (g)       additional
redemptions or prepayments of Material Unsecured Indebtedness in an aggregate
amount not to exceed $250,000,000 during any fiscal year and $500,000,000 in the
aggregate; and

    

    (h)       additional
Restricted Payments at any time after January 1, 2010, in an amount not to
exceed the Cumulative Growth Amount at such time.

    

    9.7           Fundamental
Changes.

    

    (a)       The
Borrower will not merge or consolidate with any other Person or sell or convey
all or substantially all of its assets to any Person unless no Default or Event
of Default is continuing after giving effect to such transaction and (i) it shall be the continuing
entity or (ii) (1) the Person formed by or
surviving such merger or consolidation shall be an entity organized or existing
under the laws of the United States, any state thereof, or the District of
Columbia that expressly assumes all the obligations of the Borrower under the
Transaction Documents pursuant to a supplement or amendment to this Agreement
and each other Transaction Document reasonably satisfactory to (x) in the case of any Loan
Document, DOE or (y) in the case of any Existing Collateral Security Document,
the Administrative Agent, (2) each Guarantor reaffirms
its obligations under the Transaction Documents and (3) DOE shall have received an
opinion of counsel reasonably satisfactory to DOE and consistent with the
opinions delivered on the Principal Instrument Delivery Date with respect to the
Borrower.

    

    
      
        
           

        

        
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    (b)       No
Significant Guarantor shall merge or consolidate with any other Person or sell
or convey all or substantially all of its assets to any Person unless (i) the Borrower or another
Guarantor shall be the continuing entity or shall be the transferee of such
assets or (ii) in
connection with an asset sale permitted by Section 9.5 (Asset Sale
Restrictions).

    

    9.8           Negative
Pledge.  The Borrower will not itself, and will not permit any
Manufacturing Subsidiary to, incur, issue, assume, guarantee or suffer to exist
any notes, bonds, debentures or other similar evidences of indebtedness for
money borrowed (notes, bonds, debentures or other similar evidences of
indebtedness for money borrowed being herein called “Debt”), secured by pledge of,
or mortgage or lien on, any Principal Domestic Manufacturing Property of the
Borrower or any Manufacturing Subsidiary, or any shares of stock of or Debt of
any Manufacturing Subsidiary (such mortgages, pledges and liens being
hereinafter called “Pledge” or “Pledges”), without
effectively providing that the Note A Obligations and the Note B Obligations
(together with, if the Borrower shall so determine, any other Debt of the
Borrower or of such Manufacturing Subsidiary then existing or thereafter created
ranking equally with the Note A Obligations and the Note B Obligations) shall be
secured equally and ratably with (or prior to) such secured Debt, so long as
such secured Debt shall be so secured, unless, after giving effect thereto, the
aggregate amount of all such secured Debt so secured plus all Attributable Debt
of the Borrower and its Manufacturing Subsidiaries in respect of Sale and
Leaseback Transactions would not exceed 5% of the Consolidated Net Tangible
Automotive Assets; provided, however, that this
Section 9.8 shall not apply to Debt secured by:

    

    (a)       Pledges
of property of, or on any shares of stock of or Debt of, any corporation
existing at the time such corporation becomes a Manufacturing
Subsidiary;

    

    (b)       Pledges
in favor of the Borrower or any Manufacturing Subsidiary;

    

    (c)       Pledges
in favor of any governmental body to secure progress, advance or other payments
pursuant to any contract or provision of any statute;

    

    (d)       Pledges
of property, shares of stock or Debt existing at the time of acquisition thereof
(including acquisition through merger or consolidation) or to secure the payment
of all or any part of the purchase price thereof or to secure any Debt incurred
prior to, at the time of, or within 60 days after, the acquisition of such
property or shares or Debt for the purpose of financing all or any part of the
purchase price thereof; and

    

    
      
        
           

        

        
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    (e)       any
extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Pledge referred to in the foregoing
paragraphs (a) to (d), inclusive; provided, however, that such
extension, renewal or replacement Pledge shall be limited to all or a part of
the same property, shares of stock or Debt that secured the Pledge extended,
renewed or replaced (plus improvements on such property).

    

    9.9           Sales and
Leasebacks.  The Borrower will not itself, and it will not
permit any Manufacturing Subsidiary to, enter into any arrangement with any
bank, insurance company or other lender or investor (not including the Borrower
or any Manufacturing Subsidiary) or to which any such lender or investor is a
party, providing for the leasing by the Borrower or a Manufacturing Subsidiary
for a period, including renewals, in excess of three years of any Principal
Domestic Manufacturing Property which has been or is to be sold or transferred
by the Borrower or such Manufacturing Subsidiary to such lender or investor or
to any person to whom funds have been or are to be advanced by such lender or
investor on the security of such Principal Domestic Manufacturing Property (a
“Sale and Leaseback
Transaction”) unless either:

    

    (a)       the
Borrower or such Manufacturing Subsidiary could create Debt secured by a
Mortgage pursuant to Section 9.8 (Negative Pledge) on the
Principal Domestic Manufacturing Property to be leased in an amount equal to the
Attributable Debt with respect to such Sale and Leaseback Transaction without
equally and ratably securing the Note A Obligations and the Note B Obligations;
or

    

    (b)       the
Borrower, within 120 days after the sale or transfer shall have been made by the
Borrower or by a Manufacturing Subsidiary, applies an amount equal to the
greater of:  (i) the net proceeds of the
sale of the Principal Domestic Manufacturing Property leased pursuant to such
arrangement; or (ii)
the fair market value of the Principal Domestic Manufacturing Property so leased
at the time of entering into such arrangement (as determined by any two of the
following:  the Chairman of the Board of the Borrower, its President,
any Executive Vice President of the Borrower, any Group Vice President of the
Borrower, any Vice President of the Borrower, its Treasurer or its Controller);
to the retirement of Funded Debt of the Borrower; provided, however, that the
amount to be applied to the retirement of Funded Debt of the Borrower shall be
reduced by the principal amount of Funded Debt voluntarily retired by the
Borrower within 120 days after such sale.

    

    9.10         Use of
Proceeds.  The Borrower will not, and will not permit any other
Obligor to, use the proceeds of the Loans to pay any administrative or other
fees relating to the Loans, including but not limited to the Facility
Fee.

    

    
      
        
           

        

        
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    9.11         Debarment.

    

    (a)       The
Borrower shall comply with the applicable requirements set forth in
2 C.F.R. 180 with respect to the construction, operation or maintenance of
any Project, including the obligation to verify whether Persons with whom Ford
enters into contracts in connection with the construction, operation or
maintenance of any Project are excluded or disqualified in accordance with the
approved verification methods set forth in 2 C.F.R. 180.300.

    

    (b)       The
Borrower will not fail to comply with any and all Debarment Regulations in a
manner which results in the Borrower being debarred, suspended, declared
ineligible or voluntarily excluded from participation in procurement or
nonprocurement transaction with any United States federal government department
or agency pursuant to any of such Debarment Regulations.

    

    9.12         Public
Statements.  Neither the Borrower nor any Subsidiary, nor any
director, officer, employee or other agent affiliated with the Borrower or any
Person affiliated with any of the foregoing, shall make any press announcements
or public statement about the Agreement or the other Loan Documents or the
financing transactions contemplated hereby or thereby without the prior approval
of the Director of the ATVM Program at DOE, provided that the Borrower
shall be permitted to make disclosures (x) that it reasonably
believes to be required by applicable Law or (y) of information that is or
becomes generally available to the public other than as a result of a disclosure
by the Borrower or any of the Borrower’s officers, employees, agents or advisers
in violation of this Agreement or any other Loan Document.

    

    9.13         Limitation on Senior
Obligations.  The security interest in the Existing Collateral
granted by the Borrower in favor of DOE shall be subordinated solely to (a) prior perfected security
interests securing (i)
Indebtedness and letters of credit in an aggregate principal amount not to
exceed $19,100,000,000 and (ii) for a period (which need
not be continuous) not to exceed, in the aggregate, six calendar months during
the period between the Financial Closing Date and the Maturity Date, Cash
Management Obligations and Hedging Obligations in an amount not to exceed
$1,500,000,000 at any time outstanding, and (b) Liens permitted by clauses
(a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k) (only to the extent clause
(k) relates to clauses (g), (h), (i) and (j)), (l), (m), (n), (q), (r), (s),
(t), (u), (v) and (w) of the definition of Existing Collateral Permitted Liens
(the liens described in this clause (b), “Designated Liens”) (the
obligations secured by the liens described in clauses (a) and (b), “Senior Obligations”); provided that for purposes of
this Section 9.13, if any Senior Obligations (“Refinancing Senior
Obligations”) are incurred for the purpose of refinancing any outstanding
Senior Obligations (“Refinanced Senior
Obligations”), then, from the date of the incurrence of such Refinancing
Senior Obligations through the earlier of (x) the date on which such
Refinanced Senior Obligations are repaid, prepaid or redeemed and (y) 75 days after such date of
incurrence, the Refinanced Amount (as defined below) of such Refinanced Senior
Obligations shall be deemed not to be outstanding so long as (A) within five days of the
incurrence of such Refinancing Senior Obligations the Borrower shall have
provided written notice to DOE specifying (1) the Refinancing Senior
Obligations incurred and the aggregate principal amount thereof, (2) the Refinanced Senior
Obligations to be refinanced, and the aggregate principal amount thereof to be
refinanced (the “Refinanced
Amount”) with the proceeds of such Refinancing Senior Obligations and
(3) the Borrower’s
intentions as to how the cash and cash equivalents referred to in clause (B)
below will be held pending application to the repayment, prepayment or
redemption of the Refinanced Senior Obligations and (B) an aggregate amount of
cash and cash equivalents at least equal to the Refinanced Amount is (1) pledged to the Existing
Collateral Trustee under the Existing Collateral Trust Agreement to secure the
Secured Obligations (as defined in the Existing Collateral Trust Agreement),
(2) pledged to secure
the Refinanced Senior Obligations (3) pledged to secure the
Refinancing Senior Obligations or (4) held as a reserve to fund
the repayment, prepayment or redemption of the Refinanced Senior
Obligations.  The Borrower shall not incur any Indebtedness that
benefits from a security interest that is pari passu with the security
interest in such Existing Collateral granted therein by the Borrower in favor of
DOE other than (w) any
Permitted Phase I Government Debt, (x) any Permitted Phase II
Government Debt, (y)
Indebtedness that qualifies under the substantive provisions of the definition
of Permitted Phase I Government Debt or Permitted Phase II Government Debt but
is designated as Primary Second Lien Debt under the Existing Credit Agreement or
(z) any Permitted
Refinancing of any of the foregoing.

    

    
      
        
           

        

        
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    9.14         Noneligible ATVM Project
Costs.  The Borrower will not request any Advance under any
Note for any Noneligible ATVM Project Costs.

    

    ARTICLE
X

    

    EVENTS OF
DEFAULT AND REMEDIES

    

    10.1         Events of
Default.  The occurrence of any of the following events shall
constitute an “Event of
Default” hereunder.

    

    (a)       the
Borrower shall fail to pay (i) any principal of any Note,
any principal of any Permitted Phase II Government Debt or any Reimbursement
Obligation on account of principal when due, (ii) any interest,
Reimbursement Obligation on account of interest or any Facility Fee hereunder or
under any Permitted Phase II Government Debt Document for a period of five
Business Days after the same becomes due and payable or (iii) any other amount due and
payable under any Transaction Document or under any Permitted Phase II
Government Debt Document (other than the Borrower Project Commitment) for 30
days after receipt of notice of such failure by the Borrower from DOE (other
than, in the case of amounts in this clause (iii), any such amount being
disputed by the Borrower in good faith); or

    

    
      
        
           

        

        
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    (b)       any
representation or warranty made or deemed made by the Borrower or any other
Obligor in any Transaction Document (other than any representation or warranty
made by the Borrower pursuant to Article 8 of the Note Purchase Agreement upon
execution of the Note Purchase Agreement) or any certified statement furnished
by the Borrower (including any Borrowing Base Certificate, Information
Certificate or Advance Request), shall prove to have been incorrect in any
material respect on or as of the date made or deemed made or furnished;
or

    

    (c)       the
Borrower or any Significant Guarantor shall default in the observance or
performance of (i) its
agreements in Section 9.11 (Debarment) or Section 8.1
(Financial Statements),
(ii) its agreements in
Section 9.1 (Borrowing
Base) or Section 9.2 (Available Liquidity) for a
period of 20 consecutive days or (iii) any other agreement
contained in this Agreement or any other Transaction Document and, with respect
to clause (iii) only, such default shall continue unremedied for a period of 30
days after notice thereof to the Borrower from DOE; or

    

    (d)       the
Borrower or any Significant Guarantor shall (i) default in making any
payment of any principal of any Indebtedness or any Guarantee Obligation in
respect of Indebtedness beyond the period of grace, if any; or (ii) default in making any
payment of any interest on any such Indebtedness or Guarantee Obligation, in
each case beyond the period of grace, if any; provided, that a default,
event or condition described in clause (i) or (ii) of this paragraph (d) shall
not at any time constitute an Event of Default unless, at such time, one or more
defaults, events or conditions of the type described in clauses (i) or (ii) of
this paragraph (d) shall have occurred and be continuing with respect to
Indebtedness or any such Guarantee Obligation the aggregate outstanding
principal amount of which exceeds $1,000,000,000; or

    

    (e)       any
Indebtedness incurred under the Existing Credit Agreement, any Permitted
Additional Notes, any Permitted Additional Senior Facilities, any Permitted
Second Lien Debt (other than Indebtedness referred to in Section 10.1(a)) or any
other Indebtedness issued or guaranteed by the Borrower or any Significant
Guarantor with an aggregate outstanding principal amount of $1,000,000,000 or
more shall have been accelerated by the holders thereof as a result of a default
thereunder; or

    

    (f)        (i) the Borrower, any
Significant Guarantor, FMCC, a Volvo Group Member or Ford Canada shall (A) commence any case,
proceeding or other action under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors (1)
seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (2) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or (B) make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced
against the Borrower, any Significant Guarantor, FMCC, a Volvo Group Member or
Ford Canada any case, proceeding or other action of a nature referred to in
clause (i) above that (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 90 days; or

    

    
      
        
           

        

        
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    (g)       (i)(A) any Plan shall fail to
satisfy the minimum funding standard required for any plan year or part thereof
or a waiver of such standard or extension of any amortization period has been
sought and rejected under Section 412 of the Code; (B) any Plan is or shall have
been terminated or is the subject of termination proceedings under ERISA; (C) the PBGC shall have
terminated a Plan or appointed a trustee to administer any Plan; (D) any Plan shall have an
accumulated funding deficiency which has not been waived; or (E) the Borrower or any
Commonly Controlled Entity has incurred a liability to or on account of a Plan
under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of
ERISA or Section 4971 or 4975 of the Code; and (ii) any of the foregoing has
had a Material Adverse Effect; or

    

    (h)       one
or more judgments or decrees shall be entered in the United States against the
Borrower or any Significant Guarantor that is not vacated, discharged,
satisfied, stayed or bonded pending appeal within 60 days, and involves a
liability (not paid or fully covered by insurance as to which the relevant
insurance company has not denied coverage) of either (i) $100,000,000 or more, in
the case of any single judgment or decree or (ii) $200,000,000 or more in
the aggregate; or

    

    (i)        the
ATVM Collateral Trust Agreement, the Existing Collateral Trust Agreement or any
other ATVM Collateral Security Document or Existing Collateral Security Document
shall cease to be in full force and effect, or any Lien thereunder shall cease
to be enforceable and perfected (other than pursuant to the terms hereof or
thereof or any other Transaction Document or as a result of acts or omissions by
any of DOE, FFB or the ATVM Collateral Trustee or, in the case of any Lien under
any Existing Collateral Security Document, the Administrative Agent, the
Existing Collateral Trustee or the Lenders (as defined in the Existing Credit
Agreement)) with respect to (A) Existing Collateral with
an aggregate Net Book Value in excess of $250,000,000 or (B) ATVM Collateral with an
aggregate Net Book Value in excess of $75,000,000; provided that the foregoing
Event of Default shall only be applicable with respect to Existing Collateral if
the Borrowing Base Coverage Ratio (calculated on a pro forma basis assuming such
Existing Collateral is not in the Borrowing Base) is less than 1.25 to 1.00;
or

    

    
      
        
           

        

        
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    (j)        the
guarantee of any Significant Guarantor contained in the Guarantee shall cease to
be in full force and effect; or

    

    (k)       the
occurrence of a Change of Control; or

    

    (l)        the
Borrower shall fail to make any Borrower Project Payments or payments of Cost
Overruns of at least (i) $250,000,000 for any
single Borrower Project Payment or payment of Cost Overruns or (ii) $500,000,000 in the
aggregate.

    

    10.2         Remedies;
Waivers.

    

    (a)       Upon
the occurrence of and during the continuance of an Event of Default, DOE may
exercise any one or more of the rights and remedies set forth
below:

    

    (i)          
 by notice to the Borrower, declare all or any portion of the indebtedness
of every type or description owed by the Borrower to DOE and FFB under this
Agreement and each other Loan Document to be immediately due and payable, and
the same shall thereupon be immediately due and payable;

    

    (ii)           exercise
any rights and remedies available under the Transaction Documents;

    

    (iii)          take
whatever action at law or in equity as may appear necessary or desirable in its
judgment to collect the amounts then due and thereafter to become due (x) under the Loan Documents
and (y) to the Lender
Parties by the Borrower or any other Grantor under the Existing Collateral
Security Documents or to enforce performance of any obligation of the Borrower
(A) under the Loan
Documents and (B) to
the Lender Parties under the Existing Collateral Security
Documents;

    

    (iv)          reduce
the Loan Commitment Amount available to the Borrower under Note A and/or Note B
to zero and refuse, and the DOE and FFB shall not be obligated, to make any
further Advances under the relevant Note or Notes; and/or

    

    (v)           take
those actions necessary to perfect and maintain the Liens of the ATVM Collateral
Security Documents and, to the extent authorized to do so thereunder, the
Existing Collateral Security Documents pursuant to which the Borrower’s assets
have been pledged as collateral for the repayment of obligations under the Loan
Documents and (A) enforce or cause the
ATVM Collateral Trustee to enforce any and all Liens under the ATVM Collateral
Documents, or (B) to the extent
permitted by the Existing Collateral Trust Agreement, enforce or cause the
Existing Collateral Trustee to enforce any and all Liens under the Existing
Collateral Documents.

    

    
      
        
           

        

        
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    (b)       Upon
the occurrence of an Event of Default referred to in Section 10.1(f) (Events of Default) with
respect to the Borrower, (i) the Loan Commitment Amount
available to the Borrower under Note A and/or Note B shall automatically be
reduced to zero, and (ii) each Advance made under
the Notes, together with interest accrued thereon and all other Note A Secured
Obligations and Note B Secured Obligations, shall immediately become due and
payable, without any other presentment, demand, diligence, protest, notice of
acceleration, or other notice of any kind, all of which the Borrower hereby
expressly waives.

    

    (c)       Unless
otherwise expressly provided, no remedy herein conferred upon or reserved is
intended to be exclusive of any other available remedy, but each remedy shall be
cumulative and shall be in addition to other remedies given under the
Transaction Documents or existing at law or in equity.  No delay or
failure to exercise any right or power accruing under any Transaction Document
upon the occurrence and during the continuance of any Event of Default or
otherwise shall impair any such right or power or shall be construed to be a
waiver thereof, but any such right and power may be exercised from time to time
and as often as may be deemed expedient.

    

    (d)       In
order to entitle DOE to exercise any remedy reserved to DOE in this Agreement,
it shall not be necessary to give any notice, other than such notice as may be
required in this Agreement or any other Transaction Document or under applicable
Law.

    

    (e)       If
any proceeding has been commenced to enforce any right or remedy under this
Agreement, and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to DOE or FFB, then and in every such
case, subject, in each case, to any determination in such proceeding, (i) the parties hereto shall
be restored to their respective former positions hereunder and (ii) thereafter, all rights
and remedies of DOE or FFB, as the case may be, shall continue as though no such
proceeding had been instituted.

    

    (f)        Whenever
all or any portion of the Advances hereunder (with accrued interest thereon) and
all other amounts owing under this Agreement shall have become immediately due
and payable in accordance with paragraph (a)(i) or paragraph (b) above, DOE
shall forthwith deliver a Notice of Acceleration to the ATVM Collateral Trustee
and/or the Existing Collateral Trustee, as the case may be; provided that, by written
notice to the Borrower, DOE may, for such periods and/or subject to such
conditions as may be specified in such notice, withdraw any declaration of
acceleration effected in accordance with paragraph (a)(i) above if and to the
extent permitted under Section 2.1(c) of the Existing Collateral Trust Agreement
or Section 2.1(c) of the ATVM Collateral Trust Agreement, as the case may
be.  If a declaration of acceleration in accordance with paragraph
(a)(i) shall have been withdrawn in accordance with the proviso to the
immediately preceding sentence, DOE shall forthwith deliver to each relevant
Collateral Trustee a notice of cancellation of the respective Notice of
Acceleration theretofore delivered to such Collateral Trustee.

    

    
      
        
           

        

        
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    (g)       DOE
shall have the right, to be exercised (or not) in its complete discretion, to
waive any covenant, Default or Event of Default by a writing setting forth the
terms, conditions and extent of such waiver signed by DOE and delivered to the
other parties hereto.  Any such waiver may only be effected in writing
duly executed by DOE, and no other course of conduct shall constitute a waiver
of any provision hereof.  Unless such writing expressly provides to
the contrary, any waiver so granted shall extend only to the specific event or
occurrence so waived and not to any other similar event or occurrence that
occurs subsequent to the date of such waiver.

    

    (h)       For
the purpose of enabling DOE to exercise the rights and remedies under this
Section 10.2, Borrower hereby grants to DOE, a non-exclusive license
(exercisable upon the occurrence of and during the continuance of an Event of
Default) without payment of royalty or other compensation to Borrower, to use
any of the patents, patent applications, copyrights and copyright applications
constituting Collateral, now owned or hereafter acquired by the Borrower,
wherever the same may be located, including in such license reasonable access to
all media in which any of the licensed items may be recorded or stored and to
all computer programs used for the compilation or printout thereof.

    

    10.3         Accelerated
Advances.  Upon the delivery of a Notice of Acceleration, the
accelerated amount due and payable under the Notes shall be the Prepayment Price
(as defined in and determined pursuant to the relevant Note) under such
Notes.

    

    ARTICLE
XI

    

    THE ATVM
COLLATERAL TRUSTEE

    

    11.1         Appointment.  DOE
hereby irrevocably designates and appoints, and, by accepting the benefits of
this Agreement and the Transaction Documents, each of FFB and each holder of the
Notes hereby irrevocably designates and appoints, the ATVM Collateral Trustee as
its agent under the ATVM Collateral Trust Agreement and the other Loan
Documents, and irrevocably authorizes the ATVM Collateral Trustee, in such
capacity, to (i) take
such action on its behalf under the provisions of the ATVM Collateral Trust
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the ATVM Collateral Trustee by the
terms of the ATVM Collateral Trust Agreement and the other Loan Documents,
together with such other powers as are reasonably incidental thereto and (ii) enter into any and all
ATVM Collateral Security Documents and the ATVM Collateral Trust Agreement and
such other documents and instruments as shall be necessary to give effect to
(A) the ranking and
priority of Indebtedness and other extensions of credit and obligations
contemplated by the ATVM Collateral Trust Agreement, (B) the security interests in
the ATVM Collateral purported to be created by the ATVM Collateral Security
Documents and (C) the
other terms and conditions of the ATVM Collateral Trust
Agreement.  Each of DOE, FFB and each holder of the Notes further
hereby agrees to be bound by the terms of the ATVM Collateral Trust Agreement to
the same extent as if it were a party thereto.  Notwithstanding any
provision to the contrary elsewhere in this Agreement, the ATVM Collateral
Trustee shall not have any duties or responsibilities, except those expressly
set forth in herein, in the ATVM Collateral Trust Agreement or in any other Loan
Document to which it is a party, or any fiduciary relationship with DOE, FFB or
any holder of the Notes, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Agreement, the ATVM
Collateral Trust Agreement or any other Loan Document or otherwise exist against
the ATVM Collateral Trustee.

    

    
      
        
           

        

        
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    11.2         Delegation of
Duties.  The ATVM Collateral Trustee may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  The ATVM Collateral Trustee shall
not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

    

    11.3         Exculpatory
Provisions.  Neither the ATVM Collateral Trustee nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be
(i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent
that any of the foregoing resulted from its or such Person’s own gross
negligence or willful misconduct) or (ii) responsible in any manner
to any of DOE, FFB or any holder of the Notes for any recitals, statements,
representations or warranties made by any Obligor or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received
by the ATVM Collateral Trustee under or in connection with, this Agreement or
any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of any Obligor party thereto to perform its obligations
hereunder or thereunder.  The ATVM Collateral Trustee shall not be
under any obligation to DOE, FFB or any holder of any Note to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect
the properties, books or records of any Obligor.

    

    11.4         Non-Reliance on the ATVM
Collateral Trustee.  Each of DOE, FFB and each holder of the
Notes expressly acknowledges that neither of the ATVM Collateral Trustee nor any
of its officers, directors, employees, agents, attorneys-in-fact or affiliates
has made any representations or warranties to it and that no act by the ATVM
Collateral Trustee hereafter taken, including any review of the affairs of an
Obligor or an affiliate of an Obligor, shall be deemed to constitute any
representation or warranty by the ATVM Collateral Trustee to DOE, FFB or any
holder of the Notes. Each of DOE, FFB and each holder of the Notes represents to
the ATVM Collateral Trustee that it has, independently and without reliance upon
the ATVM Collateral Trustee, and based on such documents and information as it
has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and
creditworthiness of the Obligors and their affiliates and made its own decision
to make its Loans and other extensions of credit hereunder and enter into this
Agreement.  Each of DOE, FFB and each holder of the Notes also
represents that it will, independently and without reliance upon the ATVM
Collateral Trustee, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Agreement and the other
Loan Documents, and to make such investigation as it deems necessary to inform
itself as to the business, operations, property, financial and other condition
and creditworthiness of the Obligors and their affiliates.

    

    
      
        
           

        

        
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    11.5         ATVM Collateral Trustee in
Its Individual Capacity.  The ATVM Collateral Trustee and its
affiliates may make loans to, accept deposits from and generally engage in any
kind of business with any Obligor as though it were not the ATVM Collateral
Trustee.

    

    ARTICLE
XII

    

    MISCELLANEOUS

    

    12.1         Amendments,
Etc.  This Agreement may be amended, modified or terminated
only by written instrument or written instruments signed by the parties
hereto.  To the fullest extent permitted by applicable law, no act or
course of dealing shall be deemed to constitute an amendment, modification or
termination hereof.

    

    12.2         Delay and
Waiver.  No delay or omission in exercising any right, power,
privilege or remedy (x)
under this Agreement or any other Loan Document or (y) by any Lender Party under
any Existing Collateral Security Document, including any rights and remedies in
connection with the occurrence of a Default or Event of Default shall impair any
such right, power, privilege or remedy of the Lender Parties, nor shall it be
construed to be a waiver of any right, power, privilege or remedy or of any
breach or default, or an acquiescence therein, or in any similar breach or
default thereafter occurring, nor shall any waiver of any single right, power,
privilege or remedy (x)
under this Agreement or any other Loan Document or (y) by any Lender Party under
any Existing Collateral Security Document, or of any breach or default be deemed
a waiver of any other right, power, privilege or remedy or of any other breach
or default therefore or thereafter occurring.  Any waiver, permit,
consent or approval of any kind or character on the part of any of the Lender
Parties of any right, power, privilege or remedy including any rights and
remedies in connection with the occurrence of a Default or Event of Default or
of any other breach or default under this Agreement or any other Transaction
Document, or any waiver on the part of any of the Lender Parties of any
provision or condition of this Agreement or any other Transaction Document, must
be in writing and shall be effective only to the extent in such writing
specifically set forth.  All rights, powers, privileges and remedies
(x) under this
Agreement or any other Loan Document or (y) of any Lender Party under
any Existing Collateral Security Document, either under this Agreement or any
other Transaction Document or by Law or otherwise afforded to any of the Lender
Parties, shall be cumulative and not alternative and not exclusive of any other
rights, powers, privileges and remedies that such Lender Parties may otherwise
have.

    

    
      
        
           

        

        
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    12.3         Right of
Setoff.  In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such
rights, upon the occurrence and during the continuance of an Event of Default,
each of DOE, FFB and each subsequent holder of any Note or any portion of any
Note is hereby authorized at any time or from time to time, without presentment,
demand, protest or other notice of any kind to the Borrower or to any other
Person, any such notice being hereby expressly waived, to set off and to
appropriate and apply any and all deposits (general or special, time or demand,
provisional or final) and any other Indebtedness at any time held or owing by
DOE, FFB or any such subsequent holder, as the case may be (including by any of
its branches and agencies wherever located) to or for the credit or the account
of the Borrower against and on account of the Note A Secured Obligations and the
Note B Secured Obligations and liabilities of the Borrower to DOE, FFB or any
such subsequent holder, as the case may be, under this Agreement or any other
Transaction Document.  Each of DOE, FFB and each subsequent holder of
any Note or any portion of any Note agrees promptly to notify the Borrower after
any such setoff and application made by it; provided that the failure to
give such notice shall not affect the validity of such setoff and
application.

    

    12.4         Survival of Representations
and Warranties.  All representations and warranties made
hereunder, in the other Loan Documents and in any document, certificate or
statement delivered pursuant hereto or thereto or in connection herewith or
therewith shall survive the execution and delivery of this Agreement and the
making of the Advances under the Funding Agreements.

    

    12.5   
     Notices.  Except
to the extent otherwise expressly provided herein or as required by applicable
law, all notices, reports, requests and demands to or upon the respective
parties hereto shall not be effective unless given or made in writing (including
by facsimile or electronic transmission in Electronic Format) and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or
made when (i) delivered by hand, if
signed for by or on behalf of the receiving party, (ii) if delivered by mail,
three Business Days after being deposited in the mail, postage prepaid, (iii) if deposited with an
internationally recognized overnight courier service for overnight delivery to
the receiving party, one Business Day after being deposited with such service,
(iv) if delivered
by facsimile transmission, when receipt thereof has been confirmed by telephone
or facsimile by the receiving party, and (v) if transmitted
electronically, upon receipt of electronic, telephone or facsimile confirmation
of the recipient’s receipt thereof, in each case when sent to the relevant party
at the facsimile number or address set forth with respect to such Person
below:

    

    
      
        
           

        

        
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    If to
DOE:

    

    Director

    Advanced
Technology Vehicles Manufacturing Loan Program

    CF-1.4

    United
States Department of Energy

    1000
Independence Avenue, SW

    Washington,
DC 20585

    Telephone:  (202)
586-8146

    Facsimile:  (202)
586-7809

    Email:  fordatvmtransaction@hq.doe.gov

    

    with a
copy to (which copy shall not constitute notice):

    

    Office of
the General Counsel

    GC-1

    United
States Department of Energy

    1000
Independence Avenue, SW

    Washington,
DC 20585

    Telephone:  (202)
586-5281

    Facsimile:  (202)
586-1499

    Email:  fordatvmtransaction@hq.doe.gov

    

    Debevoise
& Plimpton LLP

    919 Third
Avenue

    New York,
NY 10022

    Attention:  Darius
Tencza and Craig Bowman

    Telephone:  (212)
909-6000

    Facsimile:  (212)
909-6836

    Email:  dtencza@debevoise.com,
cabowman@debevoise.com

    

    
      
        
           

        

        
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    If to the
Borrower:

    

    Ford
Motor Company

    One American Road

    Dearborn,
MI 48126

    Attention:  Treasurer

    Telephone:  313-322-3533

    Facsimile:  313-322-3359

    Email:
ATVM@ford.com

    

    with a
copy to (which copy shall not constitute notice):

    

    Ford
Motor Company

    One
American Road

    Dearborn,
MI 48126

    Attention:  Secretary

    Telephone:  313-323-2130

    Facsimile:  313-248-8713

    

    Davis
Polk & Wardwell LLP

    450
Lexington Avenue

    New York,
NY 10017

    Attention:  Lawrence
Wieman

    Telephone:  212-450-4586

    Facsimile:  212-701-5586

    Email:  lawrence.wieman@davispolk.com

    

    or, as to
each party, such other address or facsimile number as shall be designated by
such party in a written notice to each other party hereto.

    

    12.6         Severability;
Consents.

    

    (a)       The
holding by any court of competent jurisdiction that any remedy pursued by DOE
hereunder is unavailable or unenforceable shall not affect in any way the
ability of DOE to pursue any other remedy available to it.  In the
event any provision of this Agreement shall be held invalid or unenforceable by
any court of competent jurisdiction, the parties hereto agree that such
provision shall be ineffective only to the extent of such invalidity or
unenforceability without invalidating the remainder of such provision or any
other provisions of this Agreement and shall not invalidate or render
unenforceable any other provision hereof.

    

    (b)       In
the event that DOE’s consent is required under any of the Transaction Documents,
the determination whether to grant or withhold such consent shall be made by DOE
in its sole discretion without any implied duty towards any other Person, except
as otherwise expressly provided therein.

    

    
      
        
           

        

        
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    12.7         Judgment
Currency.  The Borrower agrees, to the fullest extent permitted
under applicable law, to indemnify DOE and FFB against any loss incurred by DOE
or FFB, as the case may be, as a result of any judgment or order being given or
made for any amount due DOE or FFB hereunder or under any other Transaction
Document and such judgment or order being expressed and to be paid in a currency
(the “Judgment
Currency”) other than U.S. Dollars (the “Currency of Denomination”)
and as a result of any variation between (i) the rate of exchange
at which amounts in the Currency of Denomination are converted into Judgment
Currency for the purpose of such judgment or order, and (ii) the rate of exchange
at which DOE or FFB would have been able to purchase the Currency of
Denomination with the amount of the Judgment Currency actually received by DOE
or FFB, as the case may be, had DOE or FFB, as the case may be, utilized the
amount of Judgment Currency so received to purchase the Currency of Denomination
as promptly as practicable upon receipt thereof.  The foregoing
indemnity shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid.  The term “rate of exchange” shall
include any premiums and costs of exchange payable in connection with the
purchase of, or conversion into, the relevant Currency of Denomination that are
documented and reasonable in light of market conditions at the time of such
conversion.

    

    12.8         Indemnification.

    

    (a)       In
addition to any and all rights of reimbursement, indemnification, subrogation or
any other rights pursuant to this Agreement or under law or in equity, the
Borrower hereby agrees that it will pay, and will protect, indemnify, and hold
harmless DOE, FFB, each other governmental agency and instrumentality of the
United States and each holder or holders of the Notes or any portion thereof and
their respective designees, agents and contractors, and all of their respective
directors, officers and employees (each, an “Indemnified Person”), on an
after-tax basis, from and against (and will reimburse each Indemnified Person as
the same are incurred for) any and all losses, claims, damages, liabilities or
other expenses (including, to the extent permitted by applicable law, the
reasonable fees, disbursements and other charges of counsel) to which such
Indemnified Person may become subject arising out of or relating to any suit,
action or proceeding arising from or relating to the entering into and
performance of any Transaction Document or the disbursement of, or use of the
proceeds of, any Advance under the Funding Agreements, the consummation of any
transactions contemplated herein or in any Loan Document or the consummation of
any transactions to which any of the Lender Parties are party as contemplated in
any Existing Collateral Security Documents including, in each case, to the
extent permitted by applicable Law, the fees of counsel selected by such
Indemnified Person incurred in connection with any investigation, litigation or
other proceeding or in connection with enforcing the provisions of this Section
12.8 (each, an “Indemnified
Liability” and any claims under this Section 12.8 in respect of any
Indemnified Liabilities being referred to herein, collectively, as “Indemnity Claims”), provided that the Borrower
shall not have any obligation under this Section 12.8 to any Indemnified
Person with respect to Indemnified Liabilities to the extent they arise from the
gross negligence or willful misconduct of such Indemnified Person (as determined
pursuant to a final, non-appealable judgment by a court of competent
jurisdiction).

    

    
      
        
           

        

        
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    (b)       All
sums paid and costs incurred by any Indemnified Person with respect to any
matter indemnified hereunder shall be added to the Note A Secured Obligations or
the Note B Secured Obligations, as the case may be, and be secured by the ATVM
Collateral Security Documents or the Existing Collateral Security Documents, as
the case may be, and shall be immediately due and payable on
demand.  Each such Indemnified Person shall promptly notify the
Borrower in a timely manner of any such amounts payable by the Borrower
hereunder, provided
that any failure to provide such notice shall not affect the Borrower’s
obligations under this Section 12.8.

    

    (c)       Each
Indemnified Person within ten days after the receipt by it of notice of the
commencement of any action for which indemnity may be sought by it, or by any
Person controlling it, from the Borrower on account of the agreements contained
in this Section 12.8, shall notify the Borrower in writing of the
commencement thereof, but the failure of such Indemnified Person to so notify
the Borrower of any such action shall not release the Borrower from any
liability that it may have to such Indemnified Person.

    

    (d)       To
the extent that the undertaking in the preceding clauses of this
Section 12.8 may be unenforceable because it is violative of any applicable
Law or public policy, and to provide for just and equitable contribution in the
event of any such unenforceability (other than due to application of this
Section 12.8), the Borrower shall contribute the maximum portion that it is
permitted to pay and satisfy under applicable Law to the payment and
satisfaction of such undertakings, on the basis of the relative fault of the
Borrower, on the one hand, and the Indemnified Person, on the other
hand.

    

    (e)       The
provisions of this Section 12.8 shall survive foreclosure under the
Security Documents and satisfaction or discharge of the Note A Secured
Obligations and the Note B Secured Obligations, and shall be in addition to any
other rights and remedies of any Indemnified Person.

    

    (f)       
Any amounts payable by the Borrower pursuant to this Section 12.8 shall be
payable within the later to occur of (i) 30 Business Days
after the Borrower receives an invoice for such amounts from any applicable
Indemnified Person, and (ii) five (5) Business
Days prior to the date on which such Indemnified Person expects to pay such
costs on account of which the Borrower’s indemnity hereunder is payable, and if
not paid by such applicable date shall bear interest at the Late Charge Rate
from and after such applicable date until paid in full.

    

    
      
        
           

        

        
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    (g)       The
Borrower shall be entitled, at its expense, to participate in the defense of any
Indemnity Claim, provided that such
Indemnified Person shall have the right to retain its own counsel, at the
Borrower’s expense, and such participation by the Borrower in the defense
thereof shall not release the Borrower of any liability that it may have to the
applicable Indemnified Person.  Any Indemnified Person against whom
any Indemnity Claim is made shall be entitled to compromise or settle any such
Indemnity Claim, provided that the Borrower
shall not be liable for any such compromise or settlement effected without its
prior written consent unless, in the case of an Indemnified Person that is a
branch or agency of the United States federal government only, (i) such Indemnified Person is
required by law (other than any regulation issued by DOE or FFB, unless DOE or
FFB, as the case may be, is required pursuant to applicable law to issue
regulations requiring it to compromise or settle such Indemnity Claim) to
compromise or settle such Indemnity Claim, (ii) such Indemnified Person
shall have provided a legal opinion to the Borrower from outside counsel
reasonably acceptable to the Borrower that such Indemnified Person is required
by law to compromise or settle such Indemnity Claim and (iii) such settlement or
compromise is reasonable in light of the defenses available to such Indemnified
Person and the probability of such Indemnified Person prevailing at
trial.

    

    (h)       Upon
payment of any Indemnity Claim by the Borrower pursuant to this
Section 12.8, the Borrower, without any further action, shall be subrogated
to any and all claims that such Indemnified Person may have relating thereto,
and the applicable Indemnified Person shall at the request and expense of the
Borrower cooperate with the Borrower and give at the request and expense of the
Borrower such further assurances as are necessary or advisable to enable the
Borrower vigorously to pursue such claims.

    

    (i)        No
Indemnified Person shall be obliged to pursue first any recovery under any other
indemnity or reimbursement obligation before seeking recovery under the
indemnification and reimbursement obligations of the Borrower under this
Agreement.

    

    (j)        If
and to the extent that DOE (i) shall be fully paid
in cash or immediately-available funds by the Borrower for any Reimbursement
Obligations in respect of any payments of Reimbursement Amounts, DOE shall not
be entitled to be indemnified in respect of such payments under this
Section 12.8 and (ii) shall be fully paid
in cash or immediately available funds in respect of any Indemnified Liability
pursuant to this Section 12.8, DOE shall not be entitled to be reimbursed
under Section 4.1 (Reimbursement and Other Payment
Obligations) for such Indemnified Liability, provided that in the event
that DOE shall be entitled at any time to seek reimbursement and indemnification
in respect of any item pursuant to both Section 4.1 and this
Section 12.8, then DOE shall be entitled to be paid, and may elect, in its
sole and absolute discretion, to seek recovery, under either of such sections,
either sequentially, concurrently or in the alternative, and provided further that in the
event that any amount that DOE shall be entitled to be paid under either
Section 4.1 or this Section 12.8, as applicable, shall not be equal to
the amount that DOE is entitled to be paid under the other such section, then
DOE shall be entitled to be paid the lesser amount under either applicable
section, at its option as set forth in the preceding proviso, and DOE shall be
entitled to be paid the excess amount under the applicable section.

    

    
      
        
           

        

        
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    12.9         Limitation on
Liability.  No claim shall be made by the Borrower or any of
its Affiliates against DOE, FFB or any subsequent holder of any Note or any
portion of any Note or any of their respective Affiliates, directors, employees,
attorneys or agents for any special, indirect, consequential or punitive damages
(whether or not the claim therefor is based on contract, tort or duty imposed by
law) in connection with, arising out of or in any way related to the
transactions contemplated by this Agreement or the other Transaction Documents
or any act or omission or event occurring in connection therewith; and the
Borrower hereby waives, releases and agrees not to sue upon any such claim for
any such damages, whether or not accrued and whether or not known or suspected
to exist in its favor.

    

    12.10       Successors and
Assigns.

    

    (a)       The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted
assigns.

    

    (b)       Except
as permitted under Section 9.7(a) (Fundamental Changes), the
Borrower may not assign or otherwise transfer (whether by operation of law or
otherwise) any of its rights or obligations under this Agreement or under any
other Loan Document without the prior written consent of DOE and/or FFB, as the
case may be.

    

    (c)       FFB
may assign any or all of its rights, benefits and obligations under the
Transaction Documents and with respect to the Collateral in accordance with the
provisions of the Funding Agreements, provided that any such
assignment of any rights, benefits and obligations under the Existing Collateral
Security Documents or with respect to any Existing Collateral shall be subject
to the provisions of the Existing Collateral Security Documents, provided further that such
assignee, by accepting the benefits of this Agreement and the Transaction
Documents, (x) hereby
irrevocably designates and appoints DOE to act as its agent hereunder and under
the Transaction Documents, (y) hereby irrevocably
authorizes DOE to take such action on its behalf under the provisions of this
Agreement and the other Transaction Documents and to exercise such powers and
perform such duties as are necessary or appropriate, as determined by DOE, under
the Transaction Documents and (z) hereby authorizes DOE to
enter into all such amendments or modifications of any Transaction Document on
behalf of such assignee and or grant all waivers as are necessary or
appropriate, as determined by DOE, under the Transaction Documents (other than
amendments to the Note, which amendments shall also require the consent of such
assignee), provided further,
however, that (A) neither DOE nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be
(i) liable to any
assignee for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Transaction
Document or (ii)
responsible in any manner to any assignee for any recitals, statements,
representations or warranties made by any Obligor or any officer thereof
contained in this Agreement or any other Transaction Document or in any
certificate, report, statement or other document referred to or provided for in,
or received by DOE under or in connection with, this Agreement or any other Loan
Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Transaction Document or for any
failure of any Obligor party thereto to perform its obligations hereunder or
thereunder and (B) DOE
may conclusively rely upon information supplied by FFB or such assignee in
taking any action, or exercising any rights, in accordance with the terms of
this Section 12.10.

    

    
      
        
           

        

        
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    12.11       Participations.  FFB
may from time to time sell or otherwise grant participations in any or all of
its rights and obligations under the Loan Documents and with respect to the
Collateral without the consent of the Borrower or any Collateral Trustee, provided, however, that,
notwithstanding the foregoing, following the grant of any participation, FFB
shall continue to remain fully liable for its duties and obligations hereunder
and under the Note and the Borrower and the Lender Parties shall continue to
deal solely and directly with FFB in connection with FFB’s rights and
obligations under this Agreement and the other Transaction
Documents.

    

    12.12       Further Assurances and
Corrective Instruments.  To the extent permitted by applicable
law, each of the parties hereto shall, upon the written request of the other
party, from time to time, execute, acknowledge and deliver, or cause to be
executed, acknowledged and delivered, within a reasonable period of such
request, such amendments or supplements hereto, and such further instruments,
and take such further actions, as may be necessary in the such party’s
reasonable judgment to effectuate the intention, performance and provisions
hereof.

    

    12.13       Reinstatement.  Where
any discharge is made in whole or in part, or any arrangement is made on the
faith of, any payment, security or other disposition which is avoided or must be
repaid, whether upon the insolvency, bankruptcy, liquidation or other similar
proceeding or otherwise pursuant to any applicable law, the liability of the
Borrower under this Agreement shall, to the fullest extent permitted under
applicable law, continue as if there had been no such discharge or
arrangement.  DOE shall be entitled to concede or compromise any claim
that any such payment, security or other disposition is liable to avoidance or
repayment.

    

    
      
        
           

        

        
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    12.14       GOVERNING LAW; WAIVER OF
JURY TRIAL.

    

    (a)       THIS
AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, FEDERAL LAW AND
NOT THE LAW OF ANY STATE OR LOCALITY.  TO THE EXTENT THAT A COURT
LOOKS TO THE LAWS OF ANY STATE TO DETERMINE OR DEFINE THE FEDERAL LAW, IT IS THE
INTENTION OF THE PARTIES HERETO THAT SUCH COURT SHALL LOOK ONLY TO THE LAWS OF
THE STATE OF NEW YORK WITHOUT REGARD TO THE RULES OF CONFLICTS OF
LAWS.

    

    (b)       THE
PARTIES HERETO EACH HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
TRANSACTION RELATED HERETO OR THERETO TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW.

    

    12.15       Submission to
Jurisdiction.  Any legal action or proceeding against the
Borrower with respect to or arising out of this Agreement or any other Loan
Document may, to the fullest extent permitted by applicable law, be brought in
or removed to the U.S. District Court for the District of Columbia or any other
federal court of competent jurisdiction in any other jurisdiction where the
Borrower or any of its property may be found.  By execution and
delivery of this Agreement, the Borrower accepts, for itself and in respect of
its property, generally and unconditionally, the non-exclusive jurisdiction of
the aforesaid court for legal proceedings arising out of or in connection with
this Agreement or any other Loan Document.  The Borrower hereby
waives, to the fullest extent permitted by applicable law, any right to stay or
dismiss any action or proceeding under or in connection with this Agreement or
any other Loan Document brought before the foregoing courts on the basis of
forum non-conveniens or improper venue.  The Borrower agrees that a
judgment obtained in any such action may be enforced in any other federal court
of competent jurisdiction, by suit upon such judgment, a certified copy of which
shall be conclusive evidence of the judgment and of the fact and of the amount
of its obligation.

    

    12.16       Entire
Agreement.  This Agreement and the other Transaction Documents
constitute the entire agreement and understanding, and supersede all prior
agreements and understandings (both written and oral), between the parties
hereto with respect to the subject matter hereof and thereof.

    

    12.17       Benefits of
Agreement.  Nothing in this Agreement or any other Loan
Document, express or implied, shall give to any Person, other than the parties
hereto, FFB, each subsequent holder of any Note or any portion thereof and the
ATVM Collateral Trustee (and, with respect to Section 12.8 (Indemnification) only, the
Indemnified Persons), and their respective successors and permitted assigns
hereunder or thereunder, any benefit or any legal or equitable right or remedy
under this Agreement.

    

    
      
        
           

        

        
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    12.18       Headings.  Paragraph
headings have been inserted in the Loan Documents as a matter of convenience for
reference only and it is agreed that such paragraph headings are not a part of
the Loan Documents and shall not be used in the interpretation of any provision
of the Loan Documents.

    

    12.19       Counterparts.  This
Agreement may be executed in counterparts of the parties hereof, and each such
counterpart shall be considered an original and all such counterparts shall
constitute one and the same instrument.

    

    12.20       No Partnership;
Etc.  The Lender Parties and the Borrower intend that the
relationship between them shall be solely that of creditor and
debtor.  Nothing contained in this Agreement or in any other
Transaction Document shall be deemed or construed to create a partnership,
tenancy-in-common, joint tenancy, joint venture or co-ownership by, between or
among the Lender Parties and the Borrower or any other Person.  The
Lender Parties shall not be in any way responsible or liable for the
indebtedness, losses, obligations or duties of the Borrower or any other Person
with respect to the Projects or otherwise.  All obligations to pay
real property or other taxes, assessments, insurance premiums, and all other
fees and expenses in connection with or arising from the ownership, operation or
occupancy of any Project or any other assets of any Obligor and to perform all
obligations under the agreements and contracts relating to any Project or any
other assets of any Obligor shall be the sole responsibility of the
Borrower.

    

    12.21       Releases of Guarantees and
Liens.

    

    (a)       Notwithstanding
anything to the contrary contained herein or in any other Transaction Document,
DOE is hereby irrevocably authorized to take, and DOE hereby agrees to take
promptly, any action requested by the Borrower having the effect of releasing,
or evidencing the release of, any Collateral or Guarantee Obligations (including
by instructing any Collateral Trustee to do so) (i) to the extent necessary to
permit consummation of any transaction not prohibited by any Transaction
Document or that has been consented to in accordance with Sections 12.1 (Amendments, Etc.) or 12.2
(Delay and Waiver) or
(ii) under the
circumstances described in paragraph (b) below. For the avoidance of doubt any
such action shall include directing the ATVM Collateral Trustee to take action
under the ATVM Collateral Trust Agreement.

    

    (b)       At
such time as the Advances under Note A, the Note A Reimbursement Obligations and
interest and fees owing hereunder and under the Funding Agreements in respect of
Note A shall have been paid in full, the Note A Obligations shall cease to be
“Secured Obligations” under the Existing Collateral Trust Agreement and DOE
shall provide notice to the Existing Collateral Trustee thereof in accordance
with Section 6.12(a)(A) of the Existing Collateral Trust Agreement.

    

    
      
        
           

        

        
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    (c)       At
such time as the Advances under Note B, the Note B Reimbursement Obligations and
interest and fees owing hereunder and under the Funding Agreements in respect of
Note B shall have been paid in full, the Note B Obligations shall cease to be
“Secured Obligations” under the ATVM Collateral Trust Agreement and DOE shall
provide notice to the ATVM Collateral Trustee thereof in accordance with Section
6.11(a) of the ATVM Collateral Trust Agreement.

    

    (d)       The
Existing Collateral shall be released automatically on the first date (the
“Existing Collateral Release
Date”) on which each of the following has occurred:  (i) the Index Debt has at
least two of the following three ratings:  at least Baa3 by Moody’s,
at least BBB− by Fitch and/or at least BBB− by S&P, (ii) DOE shall have received a
certificate, in substantially the form attached hereto as Exhibit K-1, of a
Responsible Officer certifying that such condition has been satisfied (an “Existing Collateral Release
Notice”), which certificate shall be delivered to DOE by an Acceptable
Delivery Method, and (iii) the security interest in
favor of the First Priority Secured Parties (as defined in the Existing
Collateral Trust Agreement) is released concurrently therewith; provided, however, that if at
any time thereafter after the Existing Credit Agreement is refinanced, replaced
or terminated, the Borrower grants a security interest (other than Specified
Liens) on any assets that would otherwise have constituted Existing Collateral
to secure obligations under any Replacement Credit Agreement, the quarterly
installments of principal that would have been due with respect to each Note on
March 15, 2022 and June 15, 2022 shall, at the election of DOE in its sole
discretion, become due and payable on the next Quarterly Payment Date for each
such Note following the grant of such security interest. Within three Business
Days following the receipt of an Existing Collateral Release Notice, DOE shall
deliver to the Existing Collateral Trustee the notice required pursuant to
Section 6.12(a)(B) of the Existing Collateral Trust Agreement.

    

    (e)       If
any Guarantor no longer guarantees the Existing Credit Agreement or any
Replacement Credit Agreement, that Guarantor automatically shall be deemed to
have been released from the Guarantee and each Lender Party shall, at the
request of the Borrower or such Guarantor, promptly execute and deliver such
documents as shall reasonably evidence such release.

    

    (f)        Upon
repayment of any Advance or Advances pursuant to Sections 3.6(c)(ii) (Mandatory Prepayment) or
3.6(c)(iii), the security interest over the ATVM Collateral acquired or
Developed with the proceeds of the portion of any Advance or Advances repaid by
the Borrower shall be released upon delivery to DOE, by an Acceptable Delivery
Method, and to the ATVM Collateral Trustee of an ATVM Collateral Release
Certificate, substantially in the form of Exhibit K-2 hereto, together with, if
such repayment occurs after the Final Asset Identification Date (as defined in
the ATVM Collateral Security Agreement), an updated Asset Register Uniquely
Identifying the remaining ATVM Collateral.

    

    
      
        
           

        

        
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    12.22       Certain
Waivers.  Pursuant to the rights granted to DOE under Section
5.2 of the Program Financing Agreement, DOE hereby waives, on its behalf and on
behalf of FFB, (a) any
default arising out of a breach of any representation or warranty made by the
Borrower pursuant to Article 8 of the Note Purchase Agreement and (b) so long as the Borrower is
in compliance with the terms of Section 3.6(c)(vii) (Mandatory Prepayments),
including the obligation to make a payment in an amount equal to the amount
specified in Section 3.6(c)(vii), any Default or Event of Default arising
from the failure of the Borrower to comply with the terms of Section 14(e) of
Note A or Section 14(e) of Note B until the first Business Day after FFB
delivers to the Borrower a notice setting forth the applicable Prepayment
Price.  For the avoidance of doubt, DOE does not, pursuant to this
Section 12.22, waive any default arising out of a breach of any representation
or warranty under any other Transaction Document.

    

    12.23       Independence of
Covenants.  Except as expressly stated herein, all covenants
hereunder and under the other Loan Documents shall be given independent effect
so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would
otherwise be within the limitations of, another covenant shall not avoid the
occurrence of a Default or an Event of Default if such action is taken or
condition exists.

    

    12.24       Marshaling.  Neither
DOE nor FFB shall be under any obligation to marshal any assets in favor of any
Obligor or any other Person or against or in payment of any or all of the Note A
Secured Obligations or the Note B Secured Obligations.

    

    12.25       Pro Rata
Treatment.  If FFB is not the sole holder of the
Notes:  each payment on account of any Note A Obligations or Note B
Obligations, as the case may be, to or for the account of one or more of holders
of (x) Note A in
respect of Note A Obligations or (y) Note B in respect of Note
B Obligations due on a particular day shall be allocated among the respective
holders of the Notes entitled to such payments based on their respective pro
rata shares of the respective Notes and shall be distributed
accordingly.

    

    
      
        
           

        

        
          77

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, all as of the
day and year first above mentioned.

     

    
      	 
      	
              UNITED
      STATES DEPARTMENT OF ENERGY

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Lachlan Seward

            
	 
      	
              Name:

            	
              Lachlan
      Seward

            
	 
      	
              Title:

            	
              Director,
      Advanced Technology

            
	 
      	 
      	
              Vehicles
      Manufacturing Loan Program

            

    

    

    Signature
Page To Loan Arrangement And Reimbursement Agreement

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	 
      	
              FORD
      MOTOR COMPANY

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Neil M. Schloss

            
	 
      	
              Name:

            	
              Neil
      M. Schloss

            
	 
      	
              Title:

            	
              Treasurer

            

    

    

    

    Signature
Page To Loan Arrangement And Reimbursement Agreement

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    ANNEX
A

    

    

    DEFINED
TERMS

    

    “2008 10-K” has the meaning
given to such term in Section 6.1 (Financial
Condition).

    

    “A Loan” has the meaning given
to such term in Section 2.1(a) (Loans).

    

    “Acceptable Delivery Method”
means, with respect to any certificate, document or other item required to be
delivered by an Acceptable Delivery Method hereunder, (a)(1) transmission, by an
Authorized Transmitter, of such certificate, document or other item in
Electronic Format, together with the Transmission Code, and (2) if, within two
Business Days of DOE’s receipt of a transmission referred to in clause (1)
above, DOE shall make a DOE Verification Request with respect to such
transmission, the Borrower causing the recipient of such DOE Verification
Request, or any other Authorized Transmitter other than the Authorized
Transmitter that made such transmission, to verify the authenticity of such
certificate, document or other item, (b) delivery of a
manually executed original of such certificate, document or other item or (c) such other delivery
method as the Borrower and DOE shall mutually agree.

    

    “Additional Guarantor” means
each Domestic Subsidiary of the Borrower (other than any Excluded Subsidiary)
(i) that has
Consolidated Total Assets with a Net Book Value in excess of $500,000,000 and
(ii) with respect to
which the Borrower or any Guarantor directly or indirectly owns 80% or more of
the Capital Stock or Voting Stock of such Subsidiary and the remaining Capital
Stock of which is not publicly held.

    

    “Administrative Agent” has the
meaning given to such term in the Existing Credit Agreement or, as applicable,
any Replacement Credit Agreement.

    

    “Advance” means an advance of
funds by FFB to the Borrower under any Note as may be requested by the Borrower
from time to time during the Availability Period.

    

    “Advance Date” means the date
on which FFB makes any Advance or Advances to the Borrower.

    

    “Advance Percentage” has the
meaning given to such term in Schedule 1.1B to the Existing Credit
Agreement.

    

    “Advance Request” has the
meaning given to such term in Section 2.3(a) (Mechanics for Requesting
Advances).

    

    “Advance Request Approval
Notice” means a notice substantially in the form included in Exhibit A to
the Note Purchase Agreement, issued by DOE to FFB and the Borrower in accordance
with, and subject to the fulfillment of the conditions in, Section 2.4(a)(ii)
(Advance Request Approval
Notice).

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    “Affiliate” means, as to any
Person, any other Person that directly or indirectly controls, or is under
common control with, or is controlled by, such Person.  As used in
this definition, “control” (including, with its correlative meanings,
“controlled by” and “under common control with”) as used with respect to any
Person means possession, directly or indirectly, of the power to direct or cause
the direction of management or policies of such Person (whether through
ownership of voting securities or partnership or other ownership interests, by
contract or otherwise).

    

    “Agreed-Upon Procedures
Report” has the meaning given to such term in Section 8.2(b)(iv) (Agreed-Upon Procedures
Report).

    

    “Agreement” has the meaning
given to such term in the preamble hereto.

    

    “Applicable Regulations” means
the final regulations located at 10 C.F.R. Part 611 and any other applicable
regulations from time to time promulgated by DOE under Section 136.

    

    “Application” means the
application, dated November 18, 2008, which was deemed substantially complete on
December 16, 2008, and was amended and restated on June 12, 2009, submitted by
the Borrower to DOE under the ATVM Program.

    

    “Asset Register” means,
collectively, the intellectual property schedule and the capital assets
schedule, each substantially in the form of Annex III to the Form of Advance
Request, pursuant to which ATVM Collateral will be Uniquely Identified from time
to time.

    

    “Attributable Debt” means, as
to any particular lease under which any Person is at the time liable, at any
date as of which the amount thereof is to be determined, the total net amount of
rent (discounted from the respective due dates thereof at the rate of 9.5% per
annum) required to be paid by such person under such lease during the remaining
term thereof.  The net amount of rent required to be paid under any
such lease for any such period shall be the total amount of the rent payable by
the lessee with respect to such period, but may exclude amounts required to be
paid on account of maintenance and repairs, insurance, taxes, assessments, water
rates and similar charges.  In the case of any lease which is
terminable by the lessee upon the payment of a penalty, such net amount shall
also include the amount of such penalty, but no rent shall be considered as
required to be paid under such lease subsequent to the first date upon which it
may be so terminated.

    

    “ATVM Collateral” means all
property of the Borrower, now owned or hereafter acquired, in which the Borrower
has granted a Lien pursuant to any ATVM Collateral Security
Document.

    

    
      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

    

    

    “ATVM Collateral Permitted
Liens” means:

    

    (a)           Liens
for taxes, assessments, governmental charges and utility charges, in each case
that are not yet subject to penalties for non-payment or that are being
contested in good faith by appropriate proceedings; provided that adequate
reserves with respect thereto are maintained on the books of the Borrower in
conformity with GAAP;

    

    (b)           carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction or other
like Liens arising in the ordinary course of business;

    

    (c)           permits,
servitudes, licenses, easements, rights-of-way, restrictions and other similar
encumbrances imposed by applicable law or incurred in the ordinary course of
business or minor imperfections in title to real property that do not in the
aggregate materially interfere with the ordinary conduct of the business of the
Borrower and its Subsidiaries taken as a whole;

    

    (d)           leases,
licenses, subleases or sublicenses of assets (including real property and
intellectual property rights) granted to others that do not in the aggregate
materially interfere with the ordinary conduct of the business of the Borrower
and its Subsidiaries taken as a whole and licenses of trademarks and
intellectual property rights in the ordinary course of business;

    

    (e)           pledges
or deposits made in the ordinary course of business or statutory Liens imposed
in connection with worker’s compensation, unemployment insurance or other types
of social security or pension benefits or Liens incurred or pledges or deposits
made to secure the performance of bids, tenders, sales, contracts (other than
for the repayment of borrowed money), statutory obligations, and surety, appeal,
customs or performance bonds and similar obligations, or deposits as security
for contested taxes or import or customs duties or for the payment of rent, in
each case incurred in the ordinary course of business;

    

    (f)        
   Liens on property securing the payment of any outstanding
portion of the purchase price for such property, provided that the payment
obligations so secured are incurred in the ordinary course of business on
customary terms;

    

    (g)           any
Lien arising out of claims under a judgment or award rendered or claim filed so
long as such judgments, awards or claims do not constitute an Event of
Default;

    

    (h)           any
Lien consisting of rights reserved to or vested in any Governmental Authority by
any statutory provision;

    

    (i)          
 Liens created in the ordinary course of business in favor of banks and
other financial institutions over credit balances of any bank accounts held at
such banks or financial institutions or over investment property held in a
securities account, as the case may be, to facilitate the operation of cash
pooling and/or interest set-off arrangements in respect of such bank accounts or
securities accounts in the ordinary course of business;

    

    
      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

    

    

    (j)          
 Liens created pursuant to (and Liens permitted by) the ATVM Collateral
Trust Agreement and the ATVM Collateral Security Documents;

    

    (k)           Liens
in favor of lessors pursuant to sale and leaseback transactions to the extent
the Disposition of the assets subject to any such sale and leaseback transaction
is permitted under this Agreement; and

    

    (l)         
  Liens on securities accounts (other than Liens to secure
Indebtedness).

    

    “ATVM Collateral Release Date”
means the date the ATVM Collateral is released in accordance with this
Agreement.

    

    “ATVM Collateral Secured
Parties” means, collectively, the Secured Parties, as such term is
defined in the ATVM Collateral Trust Agreement.

    

    “ATVM Collateral Security
Agreement” means the Security Agreement to be executed and delivered by
the Borrower and any Subsidiary that becomes a Grantor thereunder in favor of
the ATVM Collateral Trustee, substantially in the form of Exhibit
L.

    

    “ATVM Collateral Security
Documents” means, collectively, the ATVM Collateral Trust Agreement, the
ATVM Collateral Security Agreement and each other security documents hereafter
delivered to DOE and/or the ATVM Collateral Trustee granting a Lien on any
property of any Person to secure the Secured Obligations (as defined in the ATVM
Collateral Trust Agreement).

    

    “ATVM Collateral Trust
Agreement” means the Collateral Trust Agreement to be executed and
delivered by the Borrower, each Subsidiary that becomes a party thereto, the
ATVM Collateral Trustee and the other parties named therein, substantially in
the form of Exhibit M.

    

    “ATVM Collateral Trustee”
means Wilmington Trust Company, in its capacity as trustee under the ATVM
Collateral Trust Agreement, and any successor thereof under the ATVM Collateral
Trust Agreement and, as the context may require, any co-trustee appointed
pursuant to the terms of the ATVM Collateral Trust Agreement.

    

    “ATVM Program” means the
Advanced Technology Vehicles Manufacturing Incentive Program authorized by
Section 136 and administered by DOE.

    

    
      
        
           

        

        
          A-4

          
            

          

        

        
           

        

      

    

    

    “Authorized Transmitter”
means, with respect to delivery of documentation (i) to DOE, each of the
individuals listed on the Authorized Transmitter Schedule, dated
September 16, 2009, previously delivered by the Borrower to DOE, as updated
or modified to reflect (A) successors to such
individuals and (B)
with the consent of DOE (not to be unreasonably withheld), such other
individuals in such other capacities as the Borrower may elect from time to time
and (ii) to FFB, each
of the individuals listed on the Certificate Specifying Authorized Borrower
Officials.

    

    “Availability Period” means,
(x) in the case of Note
A, the period commencing on the Financial Closing Date and ending on the “Last
Day for an Advance” specified in Note A (i.e., June 30, 2012) and (y) in the case of Note B, the
period commencing on the Financial Closing Date and ending on the “Last Day for
an Advance” specified in Note B (i.e., June 30, 2012).

    

    “Available Liquidity” means,
as of any date of determination, the sum of (i) the lesser of (x) the Total Available
Revolving Commitment (including any unused commitment under any Incremental
Revolving Facility or any Permitted Additional Senior Facility) and (y) the excess of (1) the Borrowing Base as of
such date, over (2) the
Borrowing Base Debt at such date plus (ii) “automotive gross cash”
reported in the Borrower’s most recent Annual Report on Form 10−K or Quarterly
Report on Form 10−Q, as applicable, filed with the SEC (excluding such amounts
held or owned by Foreign Subsidiaries).

    

    “B Loan” has the meaning given
to such term in Section 2.1(a) (Loans).

    

    “Borrower” has the meaning
given to such term in the preamble hereto.

    

    “Borrower Instruments” has the
meaning given to such term in Section 3.2 of the Note Purchase
Agreement.

    

    “Borrower Project Commitment”
has the meaning given to such term in Section 7.13 (Borrower Project
Commitment).

    

    “Borrower Project Payments”
has the meaning given to such term in Section 7.13 (Borrower Project
Commitment).

    

    “Borrowing Base” has the
meaning given to such term in the Existing Credit Agreement.

    

    “Borrowing Base Certificate”
has the meaning given to such term in the Existing Credit
Agreement.

    

    “Borrowing Base Coverage
Ratio” has the meaning given to such term in the Existing Credit
Agreement.

    

    
      
        
           

        

        
          A-5

          
            

          

        

        
           

        

      

    

    

    “Borrowing Base Debt” has the
meaning given to such term in the Existing Credit Agreement.

    

    “Business Day” means any day
on which FFB and the Federal Reserve Bank of New York are both open for
business.

    

    “Calculation Date” means
(x) for all Eligible
Project Costs other than Launch Costs, the last day of each fiscal month of the
Borrower and (y) for
all Eligible Project Costs constituting Launch Costs, the last day of each
fiscal quarter.

    

    “Capital Stock” means any and
all shares, interests, participations or other equivalents (however designated)
of capital stock of a corporation, any and all equivalent ownership interests in
a Person (other than a corporation) and any and all warrants, rights or options
to purchase any of the foregoing.

    

    “Cash Management Obligations”
means obligations of the Borrower or any Subsidiary to banks, financial
institutions, investment banks and others in respect of banking, cash management
(including Automated Clearinghouse transactions), custody and other similar
services and company paid credit cards that permit employees to make purchases
on behalf of the Borrower or such Subsidiary.

    

    “Certificate Specifying Authorized
Borrower Officials” has the meaning given to such term in the Note
Purchase Agreement.

    

    “C.F.R.” means the Code of
Federal Regulations.

    

    “Change of Control” means the
occurrence of either (i) more than 50% of the
Voting Stock of the Borrower being held by a Person or Persons (other than
Permitted Holders) who “act as a partnership, limited partnership, syndicate or
other group for the purpose of acquiring, holding or disposing of securities” of
the Borrower within the meaning of Section 13(d)(3) of the Exchange Act or
(ii) Continuing
Directors ceasing to constitute at least a majority of the board of directors of
the Borrower.

    

    “Code” means the Internal
Revenue Code of 1986.

    

    “Collateral” means,
collectively, the ATVM Collateral and the Existing Collateral.

    

    “Collateral Release” has the
meaning given to such term in Section 5.3(i).

    

    “Collateral Trustee” means
either of the ATVM Collateral Trustee or the Existing Collateral
Trustee.

    

    
      
        
           

        

        
          A-6

          
            

          

        

        
           

        

      

    

    

    “Common Stock” has the meaning
given to such term in Section 9.6 (Restricted
Payments).

    

    “Commonly Controlled Entity”
means an entity, whether or not incorporated, that is part of a group that
includes the Borrower and that is treated as a single employer under Section
414(b) or (c) of the Code.

    

    “Compliance Certificate” means
a certificate duly executed by a Responsible Officer of the Borrower
substantially in the form of Exhibit J.

    

    “Consolidated Net Tangible Automotive
Assets” means the sum of (i) the aggregate amount of
the Borrower’s automotive assets (less applicable reserves and other properly
deductible items) after deducting therefrom (x) all current liabilities
and (y) all goodwill,
trade names, trademarks, patents, unamortized debt discount and expense and
other like intangibles, plus (ii) the Borrower’s equity in
the net assets of its financial services subsidiaries after deducting therefrom
all goodwill, trade names, trademarks, patents, unamortized debt discount and
expense and other like intangibles, in each case as set forth in the most recent
financial statements the Borrower and its consolidated Subsidiaries delivered
pursuant to Section 8.1(a) (Financial Statements)
prepared in accordance with GAAP.

    

    “Consolidated Total Assets” at
any date means, with respect to any Person, the amount set forth opposite the
caption “total assets” (or any like caption) on a consolidated balance sheet (or
the equivalent) of such Person and its consolidated Subsidiaries.

    

    “Consolidated Total Automotive
Assets” means, at any date, the consolidated total automotive assets of
the Borrower and its consolidated Subsidiaries as of the most recent
consolidated financial statements of the Borrower delivered pursuant to Section
8.1(a) (Financial
Statements).

    

    “Continuing Director” means,
at any date, an individual (i) who is a member of the
board of directors of the Borrower on the Principal Instrument Delivery Date,
(ii) who has been
elected as a member of such board of directors with a majority of the total
votes of Permitted Holders that were cast in such election voted in favor of
such member or (iii)
who has been nominated to be a member of such board of directors by a majority
of the other Continuing Directors then in office.

    

    “Contractual Obligation”
means, as to any Person, any provision of any security issued by such Person or
of any agreement, instrument or other undertaking to which such Person is a
party or by which it or any of its property is bound.

    

    “Cost Overruns” means, as of
any date of calculation, any costs and expenses incurred by the Borrower with
respect to any Project in excess of the sum of (i) the Total Pre-Availability
Period Eligible Project Costs in respect of such Project and (ii) the Maximum Fundable
Eligible Project Costs for such Project.

    

    
      
        
           

        

        
          A-7

          
            

          

        

        
           

        

      

    

    

    “Credit Agreement Mandatory
Prepayment” shall have the meaning given to the term “Mandatory Prepayment” in the
Existing Credit Agreement.

    

    “Cumulative Growth Amount”
means, as of any date (i) an amount, not less than
zero, equal to 50% of the sum of (x) Automotive “Net Cash Flows
from Operating Activities” as set forth on the sector statement of cash flows of
the Borrower and its consolidated Subsidiaries as reported in the Borrower’s
Annual Report(s) on Form 10−K filed with the SEC for the period (taken as one
accounting period) from January 1, 2010 to the last day of the most recent
fiscal year of the Borrower for which financial statements have been delivered
pursuant to Section 8.1(a) (Financial Statements), plus
(y) Automotive “Net
Cash (used in) / provided by investing activities” on the sector statement of
cash flows of the Borrower and its consolidated Subsidiaries as reported in such
Annual Report(s) for such period, minus (ii) the aggregate amount of
Restricted Payments made pursuant to Section 9.6(h) (Restricted Payments) prior to
such date.

    

    “Currency of Denomination” has
the meaning given to such term in Section 12.7 (Judgment
Currency).

    

    “Davis-Bacon Act” means 40
U.S.C. § 3141 et seq.
and any applicable regulations promulgated thereunder.

    

    “Debarment Regulations” means
(i) the Government-wide
Debarment and Suspension (Non-procurement) regulations (Common Rule), 53 Fed.
Reg. 19204 (May 26, 1988), (ii) Subpart 9.4 (Debarment,
Suspension, and Ineligibility) of the Federal Acquisition Regulations, 48 C.F.R.
9.400 - 9.409, and (iii) the revised
Government-wide Debarment and Suspension (Non-procurement) regulations (Common
Rule), 60 Fed. Reg. 33037 (June 26, 1995).

    

    “Debt” has the meaning given
to such term in Section 9.8 (Negative
Pledge).

    

    “Default” means any of the
events specified in Section 10.1 (Events of Default), whether
or not any requirement for the giving of notice, the lapse of time, or both, has
been satisfied.

    

    “Designated Cash Management
Obligations” means obligations of the Borrower or any Subsidiary to
banks, financial institutions, investment banks and others in respect of
banking, cash management (including Automated Clearinghouse transactions),
custody and other similar services and company paid credit cards that permit
employees to make purchases on behalf of the Borrower or such Subsidiary
designated by the Borrower in accordance with the Existing Collateral Trust
Agreement from time to time as constituting “Designated Cash Management
Obligations.”

    

    
      
        
           

        

        
          A-8

          
            

          

        

        
           

        

      

    

    

    “Designated Hedging
Obligations” means the direct obligations of the Borrower, and the
obligations of the Borrower as a guarantor of any Subsidiary’s obligations, to
counterparties designated by the Borrower in accordance with the Existing
Collateral Trust Agreement from time to time as constituting “Designated Hedging
Obligations” under or in connection with any of the following:  (i) a rate swap transaction,
swap option, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option, credit protection transaction, credit swap,
credit default swap, credit default option, total return swap, credit spread
transaction, repurchase transaction, reverse repurchase transaction,
buy/sell-back transaction, securities lending transaction, weather index
transaction or forward purchase or sale of a security, commodity or other
financial instrument or interest (including any option with respect to any of
these transactions) or (ii) which is a type of
transaction that is similar to any transaction referred to in clause (i) above
that is currently, or in the future becomes, recurrently entered into in the
financial markets (including terms and conditions incorporated by reference in
such agreement) and which is a forward, swap, future, option or other derivative
on one or more rates, currencies, commodities, equity securities or other equity
instruments, debt securities or other debt instruments, economic indices or
measures of economic risk or value, or other benchmarks against which payments
or deliveries are to be made.

    

    “Designated Liens” has the
meaning given such term in Section 9.13 (Limitation on Senior
Obligations).

    

    “Developed” means (i) with respect to any
manufacturing facilities assets identified by a single “brass tag” in the
Borrower’s asset accounting system, that more than 50% of the Net Book Value of
such asset has been or, in the case of any Advance for which an Advance Request
has been submitted by the Borrower upon the making of such Advance will have
been, financed with the proceeds of Advances, (ii) with respect to any item
of “tooling”, that more than 50% of the Net Book Value of such tooling has been
or, in the case of any Advance for which an Advance Request has been submitted
by the Borrower upon the making of such Advance will have been, financed with
the proceeds of Advances and (iii) with respect to patents
and patent applications, that the cost of more than 50% (as estimated by the
Borrower in good faith) of the hours spent conceiving or developing the
inventions incorporated into such patent or patent application have been or, in
the case of any Advance for which an Advance Request has been submitted by the
Borrower upon the making of such Advance will have been, financed with the
proceeds of Advances.  “Develop” and “Development” shall have a
corresponding meaning.

    

    “Disposition” means, with
respect to any property, any sale, transfer or other disposition thereof; and
the terms “Dispose” and “Disposed of” shall have correlative
meanings.

    

    
      
        
           

        

        
          A-9

          
            

          

        

        
           

        

      

    

    

    “DOE” has the meaning given to
such term in the preamble hereto.

    

    “DOE Verification Request”
means each request by DOE for verification of the authenticity of any submission
of a certificate, report, document or other item required to be delivered
hereunder by an Authorized Transmitter of the Borrower pursuant to clause (a)(1)
of the definition of “Acceptable Delivery Method.”

    

    “Domestic Subsidiary” means
any Subsidiary of the Borrower organized under the laws of any jurisdiction
within the United States.

    

    “Drawstop Notice” has the
meaning given to such term in Section 2.4(b)(i) (Issuance).

    

    “Electronic Format” means an
unalterable electronic format (including Portable Document Format (.pdf)) with a
reproduction of signatures where required or such other format as shall be
mutually agreed between the Borrower and DOE.

    

    “Eligible Applicant” has the
meaning given to such term in the Applicable Regulations.

    

    “Eligible Costs” has the
meaning given to such term in the Applicable Regulations.

    

    “Eligible FMCC Pledged Equity”
has the meaning given to such term in Schedule 1.1B of the Existing Credit
Agreement.

    

    “Eligible PDMP PP&E” has
the meaning given to such term in Schedule 1.1B of the Existing Credit
Agreement.

    

    “Eligible Project” has the
meaning given to such term in the Applicable Regulations.

    

    “Eligible Project Costs”
means, for each Project, the Eligible Costs with respect to such
Project.

    

    “Eligible Value” has the
meaning given to such term in Schedule 1.1B of the Existing Credit
Agreement.

    

    “Environmental Laws” means any
and all foreign, Federal, state, provincial, local or municipal laws, rules,
orders, regulations, statutes, ordinances, codes, decrees, requirements of any
Governmental Authority or other applicable Law (including common law)
regulating, relating or imposing liability or standards of conduct concerning
protection of human health, the environment or natural resources, as now or may
at any time hereafter be in effect.

    

    
      
        
           

        

        
          A-10

          
            

          

        

        
           

        

      

    

    

    “Equipment” has the meaning
give to such term in the ATVM Security Agreement.

    

    “ERISA” means the Employee
Retirement Income Security Act of 1974.

    

    “Estimated Program Approval
Date” means, for each Project or Sub-Program thereof for which Program
Approval has not been achieved, the estimated date for Program Approval as set
forth on the page titled “Project Business Plan – Timing” under the heading
“Project Business Plan – Timing” and column “PA” of the Project Business
Plan.

    

    “Estimated Total Availability Period
Eligible Project Costs” means, for each Project, the portion of any
Estimated Total Eligible Project Costs incurred or expected to be incurred
during the period between December 16, 2008 and the end of the Availability
Period, as specified in the Project Business Plan.

    

    “Estimated Total Eligible Project
Costs” means, for each Project, the portion of any Estimated Total
Project Costs that constitute Eligible Project Costs, as specified in the
Project Business Plan.

    

    “Estimated Total Project
Costs” means, for each Project, the estimated total cost of such Project,
as specified in the Project Business Plan.

    

    “Event of Default” means any
of the events identified as an “Event of Default” in Section 10.1 (Events of Default), provided that any requirement
for the giving of notice, the lapse of time, or both, has been
satisfied.

    

    “Excess Advance Amount” means,
on any date of determination with respect to each Advance under any Note, an
amount equal to the total proceeds of such Advance that were not applied by the
Borrower to pay Eligible Project Costs relating to the Project for which such
Advance was sought as set forth in the most recent Agreed-Upon Procedures
Report.

    

    “Excess Loan Amount” has the
meaning given to such term in Section 3.6(c)(v) (Mandatory
Prepayments).

    

    “Excess Project Loan Amount”
has the meaning given to such term in Section 3.6(c)(iv) (Prepayments).

    

    “Exchange Act” means the
Securities and Exchange Act of 1934.

    

    “Excluded Subsidiary” means,
collectively (i) FMCC
and each Subsidiary thereof, (ii) Ford Motor Land
Development Corporation, a Delaware corporation, and each Subsidiary thereof,
(iii) any Subsidiary
that is prohibited by any applicable Requirement of Law from guaranteeing the
Note A Obligations and the Note B Obligations, (iv) any Domestic Subsidiary
that is a Subsidiary of a Foreign Subsidiary and (v) subject to Section 7.4
(Additional Collateral,
Etc.) any Subsidiary that is a bona fide joint venture.

    

    
      
        
           

        

        
          A-11

          
            

          

        

        
           

        

      

    

    

    “Existing Collateral” means all
property of the Obligors, now owned or hereafter acquired, in which the Borrower
or a Guarantor has granted a Lien pursuant to any Existing Collateral Security
Document.

    

    “Existing Collateral Permitted
Liens” means:

    

    (a)           Liens
for taxes, assessments, governmental charges and utility charges, in each case
that are not yet subject to penalties for non-payment or that are being
contested in good faith by appropriate proceedings; provided that adequate
reserves with respect thereto are maintained on the books of the Borrower in
conformity with GAAP;

    

    (b)           carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction or other
like Liens arising in the ordinary course of business;

    

    (c)           permits,
servitudes, licenses, easements, rights-of-way, restrictions and other similar
encumbrances imposed by applicable law or incurred in the ordinary course of
business or minor imperfections in title to real property that do not in the
aggregate materially interfere with the ordinary conduct of the business of the
Borrower and its Subsidiaries taken as a whole;

    

    (d)           leases,
licenses, subleases or sublicenses of assets (including real property and
intellectual property rights) granted to others that do not in the aggregate
materially interfere with the ordinary conduct of the business of the Borrower
and its Subsidiaries taken as a whole and licenses of trademarks and
intellectual property rights in the ordinary course of business;

    

    (e)           pledges
or deposits made in the ordinary course of business or statutory Liens imposed
in connection with worker’s compensation, unemployment insurance or other types
of social security or pension benefits or Liens incurred or pledges or deposits
made to secure the performance of bids, tenders, sales, contracts (other than
for the repayment of borrowed money), statutory obligations, and surety, appeal,
customs or performance bonds and similar obligations, or deposits as security
for contested taxes or import or customs duties or for the payment of rent, in
each case incurred in the ordinary course of business;

    

    (f)       
    Liens arising from Uniform Commercial Code financing
statement filings (or similar filings) regarding or otherwise arising under
leases entered into by the Borrower or any of its Subsidiaries or in connection
with sales of accounts, payment intangibles, chattel paper or
instruments;

    

    
      
        
           

        

        
          A-12

          
            

          

        

        
           

        

      

    

    

    (g)           purchase
money Liens on property (other than shares of Capital Stock or Indebtedness)
existing at the time of acquisition (including acquisition through amalgamation,
merger or consolidation) or to secure the payment of any part of the purchase
price thereof or to secure any Indebtedness incurred prior to, at the time of,
or within 60 days after, the acquisition of such property for the purpose of
financing all or any part of the purchase price thereof or to secure
Indebtedness provided, or guaranteed, by a Governmental Authority to finance
research and development, limited in each case to the property purchased (or
developed) with the proceeds thereof;

    

    (h)           Liens
in existence on the Existing Credit Agreement Closing Date; provided that no such Lien is
spread to cover any additional property after the Existing Credit Agreement
Closing Date and that the amount of Indebtedness secured thereby is not
increased (except as otherwise permitted by this Agreement);

    

    (i)        
   Liens on property or Capital Stock of a Person at the time
such Person becomes a Subsidiary; provided however, that such Liens are not
created, incurred or assumed in connection with, or in contemplation of, such
other Person becoming a Subsidiary; provided further, however, that any such
Lien may not extend to any other property owned by the Borrower or any
Subsidiary;

    

    (j)        
   Liens on property at the time the Borrower or a Subsidiary
acquires the property, including any acquisition by means of a merger or
consolidation with or into the Borrower or any Subsidiary; provided, however, that such
Liens are not created, incurred or assumed in connection with, or in
contemplation of, such acquisition; provided further, however, that such Liens
may not extend to any other property owned by the Borrower or any
Subsidiary;

    

    (k)           any
Lien securing the renewal, refinancing, replacing, refunding, amendment,
extension or modification, as a whole or in part, of any indebtedness secured by
any Lien permitted by clause (g), (h), (i), (j), (o) and (x) of this definition
or this paragraph (k) without any change in the assets subject to such
Lien;

    

    (l)        
   any Lien arising out of claims under a judgment or award
rendered or claim filed so long as such judgments, awards or claims do not
constitute an Event of Default;

    

    (m)          any
Lien consisting of rights reserved to or vested in any Governmental Authority by
any statutory provision;

    

    (n)           Liens
created in the ordinary course of business in favor of banks and other financial
institutions over credit balances of any bank accounts held at such banks or
financial institutions or over investment property held in a securities account,
as the case may be, to facilitate the operation of cash pooling and/or interest
set-off arrangements in respect of such bank accounts or securities accounts in
the ordinary course of business;

    

    
      
        
           

        

        
          A-13

          
            

          

        

        
           

        

      

    

    

    (o)           Liens
created pursuant to (and Liens permitted by) the Existing Collateral Trust
Agreement and the Existing Collateral Security Documents (other than in respect
of Permitted Second Lien Debt and including, for the avoidance of doubt,
Permitted First Lien Non-Loan Exposure); provided that (except as
provided in clause (y) below) the aggregate Outstanding Amount of Incremental
Facilities and any Revolving Commitment Increase (including unused commitments
under any Incremental Revolving Facility or Revolving Commitment Increase),
Permitted Additional Senior Facilities (including any unused commitments
thereunder) and Permitted Additional Notes at any time shall not exceed
$2,000,000,000; provided, further that (x) in the case of any
Incremental Facilities, Revolving Commitment Increases, Permitted Additional
Senior Facilities and/or Permitted Additional Notes either (A) the Mazda Shares owned by
the Borrower as of the Financial Closing Date shall have been pledged to the
Existing Collateral Trustee, for the benefit of the Existing Collateral Secured
Parties, as Collateral or (B) the aggregate Outstanding
Amount of any such Incremental Facilities and any such Revolving Commitment
Increase (including unused commitments under any Incremental Revolving Facility
or Revolving Commitment Increase), Permitted Additional Senior Facilities
(including any unused commitments thereunder) and Permitted Additional Notes
shall not exceed the sum of (1) the aggregate principal
amount of Term Loans optionally repaid since the Existing Credit Agreement
Closing Date or that are paid at maturity (including in connection with any
refinancing thereof with the proceeds of additional Incremental Facilities,
Revolving Commitment Increases, Permitted Additional Senior Facilities or
Permitted Additional Notes), plus (2) the aggregate amount of
Revolving Commitments in effect on the Existing Credit Agreement Closing Date
(plus any increases in the Revolving Commitments occurring after the Existing
Credit Agreement Closing Date, which, together with the Revolving Commitments in
effect on the Existing Credit Agreement Closing Date, do not exceed
$11,485,000,000) that have been terminated or have expired since the Existing
Credit Agreement Closing Date (including in connection with any refinancing
thereof with an Incremental Revolving Facility or Revolving Commitment Increase,
but net of the amount of any increase pursuant to clause (y)) and (y) notwithstanding the
limitations set forth in the foregoing clause (x), additional Incremental
Revolving Facilities and Revolving Commitment Increases may be established (and
extensions of credit made thereunder) in an amount not to exceed the aggregate
amount of Revolving Commitments in effect on the Existing Credit Agreement
Closing Date (plus any increases in the Revolving Commitments occurring after
the Existing Credit Agreement Closing Date, which, together with the Revolving
Commitments in effect on the Existing Credit Agreement Closing Date, do not
exceed $11,485,000,000), that have been terminated or have expired since the
Existing Credit Agreement Closing Date (reduced by any portion thereof allocated
to increase the basket in clause (x));

    

    
      
        
           

        

        
          A-14

          
            

          

        

        
           

        

      

    

    

    (p)           Liens
securing Permitted Second Lien Debt;

    

    (q)           Liens
in favor of lessors pursuant to sale and leaseback transactions to the extent
the Disposition of the assets subject to any such sale and leaseback transaction
is permitted under this Agreement;

    

    (r)          
 Liens securing Indebtedness or other obligations of a Subsidiary owing to
the Borrower or a Guarantor;

    

    (s)           Liens
under industrial revenue, municipal or similar bonds;

    

    (t)        
   Liens on securities accounts (other than Liens to secure
Indebtedness);

    

    (u)      
    statutory Liens incurred or pledges or deposits made in
favor of a Governmental Authority to secure the performance of obligations of
the Borrower or any of its Subsidiaries under Environmental Laws to which any
assets of the Borrower or any such Subsidiaries are subject;

    

    (v)           a
Lien granted by the Borrower or any of its Subsidiaries to a landlord to secure
the payment of arrears of rent in respect of leased properties in the Province
of Quebec leased from such landlord, provided that such Lien is limited to the
assets located at or about such leased properties;

    

    (w)          servicing
agreements, development agreements, site plan agreements and other agreements
with Governmental Authorities pertaining to the use or development of any of the
property and assets of the Borrower consisting of real property, provided same
are complied with; and

    

    (x)         
  Liens not otherwise permitted by the foregoing clauses securing
obligations or other liabilities of the Borrower or any Borrower; provided that
the Outstanding Amount of all such obligations and liabilities shall not exceed
$500,000,000 at any time.

    

    “Existing Collateral Release
Date” has the meaning given to such term in Section 12.21(d) (Releases of Guarantees and
Liens).

    

    “Existing Collateral Release
Notice” has the meaning given such term in Section 12.21(d) (Releases of Guarantees and
Liens).

    

    “Existing Collateral Secured
Parties” means, collectively, the Secured Parties as such term is defined
in the Existing Collateral Trust Agreement.

    

    
      
        
           

        

        
          A-15

          
            

          

        

        
           

        

      

    

    

    “Existing Collateral Security
Agreement” means that Security Agreement dated as of December 15, 2006
made by the Borrower and certain Subsidiaries in favor of the Existing
Collateral Trustee.

    

    “Existing Collateral Security
Documents” means, collectively, the Existing Collateral Security
Agreement, the Existing Collateral Trust Agreement, the Mortgages, the Trademark
Security Agreement and each other security documents hereafter delivered to the
Administrative Agent and/or the Existing Collateral Trustee granting a Lien on
any property of any Person to secure the Secured Obligations (as such term is
defined in the Existing Collateral Trust Agreement).

    

    “Existing Collateral Trust
Agreement” means the Collateral Trust Agreement, dated as of December 15,
2006, among the Borrower, certain of its Subsidiaries and Wilmington Trust
Company, as amended from time to time.

    

    “Existing Collateral Trustee”
means Wilmington Trust Company, in its capacity as trustee under the Existing
Collateral Trust Agreement, and any successor thereof under the Existing
Collateral Trust Agreement and, as the context may require, any co-trustee
appointed pursuant to the terms of the Existing Collateral Trust
Agreement.

    

    “Existing Credit Agreement”
means the Credit Agreement, dated as of December 15, 2006, as amended by the
First Amendment, dated as of September 26, 2008, the Second Amendment, dated as
of June 29, 2009, and the Third Amendment, dated as of July 22, 2009, among the
Borrower, the subsidiary borrowers from time to time parties thereto, the
lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as
Administrative Agent, and the other agents party thereto, as the same may be
further amended, supplemented, restated or otherwise modified from time to
time.

    

    “Existing Credit Agreement Closing
Date” means December 15, 2006.

    

    “Existing Loan Parties” has
the meaning given to the term “Loan Parties” in the Existing Credit Agreement
or, as applicable, any Replacement Credit Agreement.

    

    “Existing Notes” means the
senior unsecured notes of the Borrower issued pursuant to the Existing Notes
Indentures.

    

    “Existing Notes Indentures”
means, collectively, (i) the Indenture, dated as of
February 15, 1992, between the Borrower and The Bank of New York, as trustee,
and (ii) the Indenture,
dated as of January 30, 2002, between the Borrower and The Bank of New York (as
successor trustee to JPMorgan Chase Bank), as trustee.

    

    “Facility Fee” means a
facility fee equal to $5,937,000 to be paid by the Borrower to DOE on the
Principal Instrument Delivery Date.

    

    
      
        
           

        

        
          A-16

          
            

          

        

        
           

        

      

    

    

    “Federal Funding” means any
funds obtained from the United States or any agency or instrumentality thereof,
including any loans or equity investments under the Troubled Assets Relief
Program or funding under any grant program.

    

    “FFB” means the Federal
Financing Bank, an instrumentality of the United States government created by
the Federal Financing Bank Act of 1973 that is under the general supervision of
the Secretary of the Treasury.

    

    “FFB Advance Request” means
the request for Advances required to be delivered pursuant to the terms of each
Note.

    

    “Final Equipment and Fixture
Identification Date” has the meaning given to such term in Section
7.4(f)(i) (Additional
Collateral, Etc.).

    

    “Final Intellectual Property
Identification Date” has the meaning given to such term in Section
7.4(f)(ii) (Additional
Collateral, Etc.).

    

    “Financial Closing Date” means
the earlier to occur of (i) the date on which FFB
delivers an acceptance notice pursuant to Section 5.2 (Conditions Precedent to FFB Purchase
of the Notes) to purchase each Note pursuant to the terms of the Note
Purchase Agreement and (ii) the making by FFB of the
first Advance under the Notes.

    

    “Fixtures” has the meaning
give to such term in the ATVM Security Agreement.

    

    “FMCC” means Ford Motor Credit
Company LLC, a Delaware limited liability company.

    

    “Force Majeure Event” has the
meaning given to such term in Section 2.4(c)(iii).

    

    “Ford Argentina” means Ford
Argentina S.C.A., a company organized under the laws of Argentina.

    

    “Ford Brazil” means Ford Motor
Company Brasil Ltda., a company organized under the laws of Brazil.

    

    “Ford Canada” means Ford Motor
Company of Canada, Limited, a company organized under the laws of
Ontario.

    

    “Ford Mexico” means Ford Motor
Company S.A. de C.V., a company organized under the laws of Mexico.

    

    “Ford South Africa” means Ford
Motor Company of Southern Africa (Pty), a company organized under the laws of
South Africa.

    

    
      
        
           

        

        
          A-17

          
            

          

        

        
           

        

      

    

    

    “Foreign Pledgee” means Volvo,
Ford Capital B.V., Ford España S.A., Ford Automotive Holdings, Ford Deutschland
Holding GmbH, Ford Mexico, Ford Canada, Ford Argentina. Ford South Africa and
Ford Brazil.

    

    “Foreign Subsidiary” means any
Subsidiary of the Borrower that is not a Domestic Subsidiary.

    

    “Form of Advance Request” has
the meaning given to such term in Section 2.3(a) (Mechanics for Requesting
Advances).

    

    “Form of FFB Advance Request”
has the meaning given to such term in Section 2.3(a) (Mechanics for Requesting
Advances).

    

    “Fuel Economy Requirement”
means, with respect to any Project or Sub-Program, the Program Requirement for
fuel economy set forth in Sections 611.2 and 611.3 of the Applicable
Regulations.

    

    “Fuel Economy Status” means
the anticipated fuel economy status with respect to any Project set forth on the
page titled “Project Business Plan – Fuel Economy” under the heading “Present
Status – Fuel Economy (MPG)” of the Project Business Plan.

    

    “Fuel Economy Targets” means,
with respect to any Project or Sub-Program, the fuel economy targets as set
forth on the page titled “Project Business Plan – Fuel Economy” under the
heading “Project Business Plan- Fuel Targets (MPG)” of the Project Business
Plan.

    

    “Funded Debt” means all Debt
having a maturity of more than 12 months from the date of the most recent
balance sheet of the Borrower and its consolidated Subsidiaries or having a
maturity of less than 12 months but by its terms being renewable or extendible
beyond 12 months from the date of such balance sheet at the option of the
borrower thereof.

    

    “Funding Agreements” has the
meaning given to such term in Section 5.1(a)(ii) (Conditions Precedent to the
Principal Instrument Delivery Date).

    

    “GAAP” means generally
accepted accounting principles in the United States as in effect from time to
time.  In the event that any Accounting Change (as defined below)
shall occur and such change results in a change in the method of calculation of
covenants, standards or terms in this Agreement, then the Borrower and DOE agree
to enter into negotiations in order to amend such provisions of this Agreement
so as to reflect equitably such Accounting Changes with the desired result that
the criteria for evaluating the Borrower’s financial condition shall be the same
after such Accounting Changes as if such Accounting Changes had not been
made.  Until such time as such an amendment shall have been executed
and delivered by the Borrower and DOE, all covenants, standards and terms in
this Agreement shall continue to be calculated or construed as if such
Accounting Changes had not occurred.  “Accounting Changes” refers to
changes in accounting principles required by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards Board
of the American Institute of Certified Public Accountants or, if applicable, the
SEC; provided that the
effect of any such change on the calculation of the Borrowing Base shall be made
pursuant to and as provided in the Existing Credit Agreement or, as applicable,
any Replacement Credit Agreement.

    

    
      
        
           

        

        
          A-18

          
            

          

        

        
           

        

      

    

    

    “Governmental Approval” means
any approval, consent, authorization, license, permit, order, certificate,
qualification, waiver, exemption, or variance, or any other action of a similar
nature, of or by a Governmental Authority, including any of the foregoing that
are or may be deemed given or withheld by failure to act within a specified time
period.

    

    “Governmental Authority” means
any federal, state, provincial, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, or any federal, state or
municipal court, in each case whether of the United States or
foreign.

    

    “Grant” means any grant
awarded in respect of the Company’s application dated as of May 12, 2009
under “Transportation Electrification – Funding Opportunity Number
DE-FOA­0000028”.

    

    “Grant Funded Eligible Project
Costs” has the meaning given to such term in Section 7.12 (Federal
Funding).

    

    “Grantor” with respect to
(x) the Existing
Collateral Trust Agreement, has the meaning given to such term in the Existing
Collateral Trust Agreement and (y) the Existing Collateral
Security Agreement, has the meaning given to such term in the Existing
Collateral Security Agreement.

    

    “Grupo Ford” means Grupo Ford
S. de R.L. de C.V., a company organized under the laws of Mexico.

    

    “Grupo Ford Intercompany Note”
means the $901,750,621 intercompany note from Grupo Ford to Ford Mexico
Holdings, Inc., listed on Schedule 5.1(g) of the Existing Credit
Agreement.

    

    “Guarantee” means the
Guarantee to be executed and delivered to DOE by the Borrower and each
Guarantor, substantially in the form of Exhibit N.

    

    “Guarantee Obligation” means,
as to any Person, any obligation of such Person guaranteeing any Indebtedness of
any other Person.

    

    
      
        
           

        

        
          A-19

          
            

          

        

        
           

        

      

    

    

    “Guarantor” means each Initial
Guarantor, each Additional Guarantor and each other Subsidiary (including any
joint venture) that becomes a party to the Guarantee after the Financial Closing
Date pursuant to Section 7.4 (Additional Collateral, Etc.)
or otherwise.

    

    “Hedging Obligations” means
the direct obligations of the Borrower, and the obligations of the Borrower as a
guarantor of any Subsidiary’s obligations, to counterparties under or in
connection with any of the following:  (i) a rate swap transaction,
swap option, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option, credit protection transaction, credit swap,
credit default swap, credit default option, total return swap, credit spread
transaction, repurchase transaction, reverse repurchase transaction,
buy/sell-back transaction, securities lending transaction, weather index
transaction or forward purchase or sale of a security, commodity or other
financial instrument or interest (including any option with respect to any of
these transactions) or (ii) a type of transaction
that is similar to any transaction referred to in clause (i) above that is
currently, or in the future becomes, recurrently entered into in the financial
markets (including terms and conditions incorporated by reference in such
agreement) and which is a forward, swap, future, option or other derivative on
one or more rates, currencies, commodities, equity securities or other equity
instruments, debt securities or other debt instruments, economic indices or
measures of economic risk or value, or other benchmarks against which payments
or deliveries are to be made.

    

    “Identified ATVM Collateral”
means, on any date, all ATVM Collateral identified on an Asset Register
delivered by the Borrower to DOE on or prior to such date.

    

    “Incremental Facility” has the
meaning given to such term in the Existing Credit Agreement.

    

    “Incremental Revolving
Facility” has the meaning given to such term in the Existing Credit
Agreement.

    

    “Indebtedness” means, as to
any Person at any date, all indebtedness of such Person for borrowed
money.

    

    “Indemnified Liability” has
the meaning given to such term in Section 12.8(a) (Indemnification).

    

    “Indemnified Person” has the
meaning given to such term in Section 12.8(a) (Indemnification).

    

    
      
        
           

        

        
          A-20

          
            

          

        

        
           

        

      

    

    

    “Indemnity Claims” has the
meaning given to such term in Section 12.8(a) (Indemnification).

    

    “Independent Auditor” means
PricewaterhouseCoopers, or any other successor independent certified public
accounting firm appointed by the Borrower.

    

    “Index Debt” means senior,
unsecured, long-term Indebtedness of the Borrower.

    

    “Information Certificate”
means the Information Certificate executed by the Borrower and submitted to DOE
pursuant to Section 5.1(h) (Conditions Precedent to the
Principal Instrument Delivery Date).

    

    “Initial Guarantor” means each
Subsidiary listed on Schedule 6.13(a).

    

    “Intellectual Property” means
the collective reference to all rights, priorities and privileges with respect
to intellectual property, whether arising under United States, multinational or
foreign law or otherwise, including copyrights, copyright licenses, patents,
patent licenses, trademarks, trademark licenses, technology,
know-how,  and processes, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.

    

    “Intended Prepayment Date” has
the meaning given to such term in the relevant Note.

    

    “Intercreditor Agent” has the
meaning given to such term in the Intercreditor Agreement.

    

    “Intercreditor Agreement”
means the Intercreditor Agreement, dated as of September 16, 2009, among
Ford-UAW Holdings LLC, DOE, the Borrower, the Subsidiaries of the Borrower from
time to time parties thereto and Wilmington Trust Company, as intercreditor
agent.

    

    “Judgment Currency” has the
meaning given to such term in Section 12.7 (Judgment
Currency).

    

    “Late Charge” has the meaning
given to such term in the relevant Note.

    

    “Late Charge Rate” has the
meaning given to such term in the relevant Note.

    

    “Launch Costs” means Eligible
Project Costs that are not accounted for in the Borrower’s accounting system, as
in effect from time to time, as capitalizable facilities and tooling, expensed
facilities and tooling, or engineering.

    

    
      
        
           

        

        
          A-21

          
            

          

        

        
           

        

      

    

    

    “Law” means, as to any Person,
any law, treaty, rule or regulation or determination of an arbitrator or a court
of competent jurisdiction or other Governmental Authority, in each case
applicable to and binding upon such Person and any of its property, and to which
such Person and any of its property is subject.

    

    “Lender Party” means each of
DOE, FFB, each Collateral Trustee and any subsequent holder or holders of any
Note or any portion of any Note.

    

    “Lien” means any mortgage,
pledge, lien, security interest, charge, statutory deemed trust, conditional
sale or other title retention agreement or other similar
encumbrance.

    

    “Loan A Commitment Amount” has
the meaning given to “Loan Commitment Amount” in Note A.

    

    “Loan B Commitment Amount” has
the meaning given to “Loan Commitment Amount” in Note B.

    

    “Loan Commitment Amount”
means, in the aggregate, the sum of the Loan A Commitment Amount plus the Loan B Commitment
Amount.

    

    “Loan Document Amounts” means
any amounts payable or allegedly payable by the Borrower to FFB under any
provision of any Loan Document, other than Section 4.1.

    

    “Loan Documents” means,
collectively, this Agreement, the Funding Agreements, the Guarantee, the ATVM
Collateral Security Documents, the Intercreditor Agreement and each other
agreement, certificate, document or instrument which the parties hereto
expressly designate as a “Loan
Document”.

    

    “Loan Reclassification Notice”
has the meaning given to such term in Section 2.7 (Reallocation of
Advances).

    

    “Loans” means those loans to
be made by FFB and arranged by DOE pursuant to this Agreement.

    

    “Mandatory Prepayment” means
the prepayment of any outstanding Loans, in whole or in part, pursuant to
Section 3.6(c) (Prepayments).

    

    “Manufacturing Subsidiary”
means a Subsidiary of the Borrower which owns or leases a Principal Domestic
Manufacturing Property.

    

    “Material Adverse Effect”
means a material adverse effect on (i) the financial condition of
the Borrower and its Subsidiaries, taken as a whole, or (ii) the validity or
enforceability of this Agreement, any of the Notes or the other Transaction
Documents or (iii) the
rights and remedies of DOE, FFB or any Collateral Trustee hereunder or
thereunder.

    

    
      
        
           

        

        
          A-22

          
            

          

        

        
           

        

      

    

    

    “Material Guarantee” means a
Guarantee Obligation with an Outstanding Amount in excess of $100,000,000 in
respect of Indebtedness having an aggregate Outstanding Amount in excess of
$100,000,000.

    

    “Material Unsecured
Indebtedness” means (i) any Existing Notes and
(ii) any unsecured
Indebtedness or preferred Capital Stock of the Borrower having an aggregate
Outstanding Amount or liquidation preference, as the case may be, in excess of
$250,000,000.

    

    “Maturity Date” means June 15,
2022.

    

    “Maximum Fundable Eligible Project
Costs” means, with respect to any Project, 107% of the Estimated Total
Availability Period Eligible Project Costs set forth for such Project on the
page titled “Project Business Plan – Financials” under the heading “Max 7% of
Eligible” of the Project Business Plan.

    

    “Maximum Principal Amount”
means, in the case of any Note, the amount set forth under the heading “Maximum
Principal Amount” on such Note.

    

    “Maximum Total Loan A Amount”
has the meaning given to such term in Section 2.1(b)(ii) (Advance Request Approval
Notice).

    

    “Maximum Total Loan Amount”
means the lesser of (i)
$5,937,000,000 and (ii)
the sum of, as of any date of determination:

    

    
      	
               
      

            	
              (a)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project A on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project A on or prior to such date minus Total Pre-Availability
      Period Eligible Project Costs for Project A, provided that the
      cumulative Advances made in respect of Project A shall in no event exceed
      the Maximum Fundable Eligible Project Costs for Project A (such amount as
      of any date of determination, the “Project A Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project B on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project B on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project B, provided that the cumulative
      Advances made in respect of Project B shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project B (such amount as of any date
      of determination, the “Project B Maximum Loan
      Amount”); plus

            

    

    

    
      
        
           

        

        
          A-23

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (c)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project C on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project C on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project C, provided that the cumulative
      Advances made in respect of Project C shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project C  (such amount as
      of any date of determination, the “Project C Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project D on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project D on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project D, provided that the cumulative
      Advances made in respect of Project D shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project D (such amount as of any date
      of determination, the “Project D Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project E on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project E on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project E, provided that the cumulative
      Advances made in respect of Project E shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project E (such amount as of any date
      of determination, the “Project E Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project F on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project F on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project F, provided that the cumulative
      Advances made in respect of Project F shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project F (such amount as of any date
      of determination, the “Project F Maximum Loan
      Amount”); plus

            

    

    

    
      
        
           

        

        
          A-24

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (g)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project G on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project G on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project G, provided that the cumulative
      Advances made in respect of Project G shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project G (such amount as of any date
      of determination, the “Project G Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (h)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project H on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project H on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project H, provided that the cumulative
      Advances made in respect of Project H shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project H (such amount as of any date
      of determination, the “Project H Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project I on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project I on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project I, provided that the cumulative
      Advances made in respect of Project I shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project I (such amount as of any date
      of determination, the “Project I Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (j)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project J on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project J on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project J, provided that the cumulative
      Advances made in respect of Project J shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project J (such amount as of any date
      of determination, the “Project J Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (k)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project K on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project K on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project K, provided that the cumulative
      Advances made in respect of Project K shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project K (such amount as of any date
      of determination, the “Project K Maximum Loan
      Amount”); plus

            

    

    

    
      
        
           

        

        
          A-25

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (l)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project L on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project F on or prior to such date minus Total Pre-Availability Period
      Eligible Project Costs for Project L, provided that the cumulative
      Advances made in respect of Project L shall in no event exceed the Maximum
      Fundable Eligible Project Costs for Project L (such amount as of any date
      of determination, the “Project L Maximum Loan
      Amount”); plus

            

    

    

    
      	
               
      

            	
              (m)

            	
              the
      lesser of (x) 80%
      of all Eligible Project Costs incurred by the Borrower with respect to
      Project M on or prior to such date and (y) an amount equal to
      all Eligible Project Costs incurred by the Borrower with respect to
      Project M on or prior to such date minus Total Pre-Availability
      Period Eligible Project Costs for Project M, provided that the
      cumulative Advances made in respect of Project M shall in no event exceed
      the Maximum Fundable Eligible Project Costs for Project M (such amount as
      of any date of determination, the “Project M Maximum Loan
      Amount”).

            

    

    

    “Maximum Total Loan B Amount”
has the meaning given to such term in Section 2.1(b)(iii) (Advance Request Approval
Notice).

    

    “Modifying Agreement” has the
meaning given to such term in Section 7.1(b) (Amendments to Certain
Agreements).

    

    “Mortgaged Property” means
each property listed on Schedule A, as to which the Existing Collateral Trustee
for the benefit of the Existing Collateral Secured Parties has been granted a
Lien pursuant to the Mortgages.

    

    “Mortgages” means each of the
mortgages and deeds of trust made by the Borrower or any Guarantor in favor of,
or for the benefit of, the Existing Collateral Trustee for the benefit of the
Existing Collateral Secured Parties.

    

    “NEPA” means the National
Environmental Policy Act, 42 U.S.C. 4321 et seq. and all regulations
promulgated thereunder, as either is amended or modified from time to
time.

    

    
      
        
           

        

        
          A-26

          
            

          

        

        
           

        

      

    

    

    “Net Book Value” means (i) with respect to any asset
of any Person other than accounts receivable, the gross book value of such asset
on the balance sheet of such Person, minus depreciation in respect of such asset
on such balance sheet and (ii) with respect to accounts
receivable, the gross book value thereof, minus any specific reserves
attributable thereto.

    

    “Net Cash Proceeds” means
(i) the gross cash
proceeds (including payments from time to time in respect of installment
obligations, if applicable, and cash equivalents) received less (ii) the sum
of:  (w) the
amount, if any, of all taxes paid or estimated to be payable by the Borrower or
any Subsidiary or affiliate thereof in connection with such transaction, (x) the amount of any
reasonable reserve established in accordance with GAAP against any liabilities
(other than any taxes deducted pursuant to clause (w) above) (1) associated with the assets
that are the subject of such transaction and (2) retained by the Borrower
or any Subsidiary or affiliate thereof, (y) the amount of any
indebtedness secured by a Lien on the assets that are the subject of the
transaction to the extent that the instrument creating or evidencing such
indebtedness requires that such indebtedness be repaid upon consummation of such
transaction (but excluding the Loans), and (z) fees and expenses
attributable to the transaction.

    

    “Noncompliant Project” has the
meaning given to such term in Section 5.3(d) (Advance Approval Conditions
Precedent).

    

    “Noneligible ATVM Project
Costs” has the meaning given to such term in Section 7.12 (Federal
Funding).

    

    “Note A” means the promissory
note to be issued by the Borrower, substantially in the form of Exhibit O, in
favor of FFB to induce FFB to advance funds thereunder to the Borrower, as such
note may be amended, supplemented and restated from time to time in accordance
with its terms.

    

    
      
        
           

        

        
          A-27

          
            

          

        

        
           

        

      

    

    

    “Note A Obligations” means,
collectively, the unpaid principal of and interest on Advances made under Note A
and Note A Reimbursement Obligations and all other obligations and liabilities
of the Borrower (including interest accruing at the then applicable rate
provided in the Funding Agreements after maturity of the relevant Advances and
Reimbursement Obligations and Post-Petition Interest (as such term is defined in
the Existing Collateral Trust Agreement)) to DOE, FFB or any subsequent holder
or holders of Note A or any portion of Note A relating to Note A, whether direct
or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, the Guarantee, Note A, the Note Purchase Agreement, the Program
Financing Agreement, the Existing Collateral Security Documents, or any other
document made, delivered or given in connection with any of the foregoing, in
each case whether on account of principal, interest, reimbursement obligations,
fees, prepayment premiums, indemnities, costs, expenses or otherwise (including
all fees and Advances made with respect to Note A of DOE or FFB that are
required to be paid by the Borrower or any of the Guarantors pursuant to the
terms of any of the foregoing agreements).

    

    “Note A Reimbursement
Obligations” means any Reimbursement Obligations of the Borrower or any
Guarantor to DOE arising under, out of, pursuant to or in connection with Note
A.

    

    “Note A Secured Obligations”
shall mean, without duplication, (i) all Note A Obligations and
(ii) all Subsidiary
Obligations relating to any Note A Obligations, provided, however, that to the extent
any payment with respect to the Note A Obligations (whether by or on behalf of
the Borrower or any Subsidiary from time to time party to the Existing
Collateral Trust Agreement, as proceeds of the Existing Collateral, enforcement
of any right of set off or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a debtor in
possession, trustee, receiver or similar Person, then the obligations or part
thereof originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment had not occurred.

    

    “Note B” means the promissory
note to be issued by the Borrower, substantially in the form of Exhibit P, in
favor of FFB to induce FFB to advance funds thereunder to the Borrower, as such
note may be amended, supplemented and restated from time to time in accordance
with its terms.

    

    “Note B Obligations” means,
collectively, the unpaid principal of and interest on Advances made under Note B
and Note B Reimbursement Obligations and all other obligations and liabilities
of the Borrower (including interest accruing at the then applicable rate
provided in the Funding Agreements after maturity of the relevant Advances and
Reimbursement Obligations and Post-Petition Interest (as such term is defined in
the ATVM Collateral Trust Agreement)) to DOE, FFB or any subsequent holder or
holders of Note B or any portion of Note B relating to Note B, whether direct or
indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, the Guarantee, Note B, the Note Purchase Agreement, the Program
Financing Agreement, the ATVM Collateral Security Documents, or any other
document made, delivered or given in connection with any of the foregoing, in
each case whether on account of principal, interest, reimbursement obligations,
fees, prepayment premiums, indemnities, costs, expenses or otherwise (including
all fees and Advances made with respect to Note B of DOE or FFB that are
required to be paid by the Borrower or any of the Guarantors pursuant to the
terms of any of the foregoing agreements).

    

    “Note B Reimbursement
Obligations” means any Reimbursement Obligations of the Borrower or any
Guarantor to DOE arising under, out of, pursuant to or in connection with Note
B

    

    
      
        
           

        

        
          A-28

          
            

          

        

        
           

        

      

    

    

    “Note B Secured Obligations”
shall mean, without duplication, (i) all Note B Obligations and
(ii) all Subsidiary
Obligations relating to Note B Obligations, provided, however, that to
the extent any payment with respect to the Note B Obligations (whether by or on
behalf of the Borrower or any Subsidiary that is from time to time a party to
the ATVM Collateral Trust Agreement, as proceeds of the ATVM Collateral,
enforcement of any right of set off or otherwise) is declared to be fraudulent
or preferential in any respect, set aside or required to be paid to a debtor in
possession, trustee, receiver or similar Person, then the obligations or part
thereof originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment had not occurred.

    

    “Note Purchase Agreement”
means the Note Purchase Agreement, dated as of September 16, 2009, among
the Borrower, the Secretary of Energy and FFB.

    

    “Notes” means each of Note A
and Note B.

    

    “Notice of Acceleration” has,
with regard to the ATVM Collateral, the meaning given to such term in the ATVM
Collateral Trust Agreement and, with regard to the Existing Collateral, the
meaning given to such term in the Existing Collateral Trust
Agreement.

    

    “Obligor” means the Borrower
and each Guarantor.

    

    “OFAC” means the Office of
Foreign Assets Control of the United States Department of the
Treasury.

    

    “Opinion of Borrower’s Counsel
re:  Borrower Instruments” has the meaning given to such term
in the Note Purchase Agreement.

    

    “Other Principal Trade Names”
means each of the trademarks listed under the heading “Other Principal Trade
Names” on Schedule 1.1F to the Existing Credit Agreement and all other
Trademarks consisting of or containing any of the trademarks listed under the
heading “Other Principal Trade Names” on Schedule 1.1F to the Existing Credit
Agreement or any variation or simulation thereof.

    

    “Outstanding Amount” means
(i) with respect to
Indebtedness, the aggregate outstanding principal amount thereof, (ii) with respect to banker’s
acceptances, letters of credit or letters of guarantee, the aggregate undrawn,
unexpired face amount thereof plus the aggregate unreimbursed drawn amount
thereof, (iii) with
respect to hedging obligations, the aggregate amount recorded by the Borrower or
any Subsidiary as its termination liability thereunder, (iv) with respect to cash
management obligations or guarantees, the aggregate maximum amount thereof
(x) that the relevant
cash management provider is entitled to assert as such as agreed from time to
time by the Borrower or any Subsidiary and such provider or (y) the principal amount of
the Indebtedness being guaranteed or, if less, the maximum amount of such
guarantee set forth in the relevant guarantee and (v) with respect to any other
obligations, the aggregate outstanding amount thereof.

    

    
      
        
           

        

        
          A-29

          
            

          

        

        
           

        

      

    

    

    “PBGC” means the Pension
Benefit Guaranty Corporation or any entity succeeding to any or all of its
functions under ERISA.

    

    “PDMP” means “Principal
Domestic Manufacturing Property” as defined in the Existing Notes
Indentures.

    

    “Permitted Additional Notes”
has the meaning given to such term in the Existing Credit
Agreement.

    

    “Permitted Additional Senior
Facilities” has the meaning given to such term in the Existing Credit
Agreement.

    

    “Permitted First Lien Non-Loan
Exposure” means Designated Hedging Obligations, Designated Cash
Management Obligations, reimbursement obligations in respect of letters of
credit and bank guarantees, guarantees provided by the Borrower or a Guarantor
(including in respect of Indebtedness) and other obligations of the Borrower or
a Guarantor that do not constitute Indebtedness that have been designated by the
Borrower pursuant to the terms of the Existing Collateral Trust Agreement as
“Permitted First Lien Non-Loan Exposure”; provided that after giving
pro forma effect to such designation and any application of the proceeds thereof
the Borrowing Base Coverage Ratio is at least 1.00 to 1.00; provided, further, that the aggregate
Outstanding Amount of Permitted First Lien Non-Loan Exposure shall not exceed
$1,500,000,000 at any time.

    

    “Permitted Holders” means
holders of the Borrower’s Class B Stock on the Existing Credit Agreement Closing
Date and other holders of such Capital Stock from time to time; provided that such holders
satisfy the qualifications set forth in clauses (i) through (vii) of subsection
2.2 of Article Fourth of the Borrower’s Restated Certificate of Incorporation as
in effect on the Existing Credit Agreement Closing Date.

    

    “Permitted Phase I Government
Debt” means Indebtedness of the Borrower (including Note A Obligations)
or any Guarantor that has been designated “Second Priority Additional Debt”
pursuant to the Existing Collateral Trust Agreement and designated as “Permitted
Phase I Government Debt” under the Existing Credit Agreement; provided, that (x) (a) such Indebtedness is
provided by the United States government (or any agency or instrumentality
thereof) in connection with the ATVM Program or any successor, replacement or
similar program thereto, (b) with respect to (i) interest rate methodology,
(ii) fees, (iii) amortization, (iv) final maturity date,
(v) collateral, liens,
priority and intercreditor arrangements and (vi) negative covenants
(including the absence of financial covenants), such Indebtedness is not on
terms that are materially less favorable to the Borrower or the Lenders (as such
term is defined in the Existing Credit Agreement) than the terms set forth in
the Conditional Commitment Letter (including the term sheet attached thereto),
dated as of June 23, 2009, by and between the Borrower and DOE, (c) such Indebtedness is on
terms, taken as a whole, that are not more restrictive to the Borrower than the
terms of this Agreement (other than with respect to interest rate, fees, call
features or premiums), and (d) the aggregate Outstanding
Amount of Permitted Phase I Government Debt shall not exceed $5,937,000,000 or
(y) such Indebtedness
is a Permitted Refinancing of Permitted Phase I Government Debt; provided, further, that a
certificate of a Responsible Officer of the Borrower is delivered to the
Administrative Agent and DOE at least five Business Days (or such shorter period
as the Administrative Agent and DOE may reasonably agree) prior to the
incurrence of such Indebtedness, together with a description of the material
terms and conditions of such Indebtedness or drafts of the documentation
relating thereto, stating that the Borrower has determined in good faith that
such terms and conditions satisfy the foregoing requirements and such terms and
conditions shall be deemed to satisfy the foregoing requirements unless the
Administrative Agent and DOE notifies the Borrower within such period that it
disagrees with such determination (including a reasonable description of the
basis upon which it disagrees).

    

    
      
        
           

        

        
          A-30

          
            

          

        

        
           

        

      

    

    

    “Permitted Phase II Government
Debt” means Indebtedness of the Borrower or any Guarantor that has been
designated “Second Priority Additional Debt” pursuant to the Existing Collateral
Trust Agreement and designated as “Permitted Phase II Government Debt” under the
Existing Credit Agreement; provided, that (x) (a) such Indebtedness is
provided by (i) the
United States government (or any agency or instrumentality thereof) or (ii) a commercial bank and
guaranteed by the United States government (or any agency or instrumentality
thereof), in each case, in connection with the ATVM Program or any successor,
replacement or similar program thereto, (b) the final maturity date
thereof shall not be earlier than six months after the later of the Revolving
Termination Date and the Term Loan Maturity Date, in each case, in effect at the
date of incurrence of such Indebtedness, (c) the weighted average life
to maturity of such Indebtedness shall be longer than the weighted average life
to maturity of the Term Loans then outstanding, (d) such Indebtedness is on
terms, taken as a whole, that are not more restrictive to the Borrower than the
terms of the Existing Credit Agreement (other than with respect to interest
rate, fees, call features or premiums), and (e) the aggregate Outstanding
Amount of Permitted Phase II Government Debt shall not exceed the lesser of
(i) $7,000,000,000 and
(ii) an amount equal to
$10,400,000,000 less the Outstanding Amount of Permitted Phase I Government Debt
then outstanding or (y)
such Indebtedness is a Permitted Refinancing of Permitted Phase II Government
Debt; provided,
further, that a certificate of a Responsible Officer of the Borrower is
delivered to the Administrative Agent and DOE at least five Business Days (or
such shorter period as the Administrative Agent and DOE may reasonably agree)
prior to the incurrence of such Indebtedness, together with a description of the
material terms and conditions of such Indebtedness or drafts of the
documentation relating thereto, stating that the Borrower has determined in good
faith that such terms and conditions satisfy the foregoing requirements and such
terms and conditions shall be deemed to satisfy the foregoing requirements
unless the Administrative Agent and DOE notifies the Borrower within such period
that it disagrees with such determination (including a reasonable description of
the basis upon which it disagrees).

    

    
      
        
           

        

        
          A-31

          
            

          

        

        
           

        

      

    

    

    “Permitted Phase II Government Debt
Document” means any agreement or other document entered into in
connection with any Permitted Phase II Government Debt.

    

    “Permitted Refinancing” means
any Indebtedness (or preferred Capital Stock, as the case may be) issued in
exchange for, or the net proceeds of which are used to extend, refinance, renew,
replace, defease or refund other Indebtedness (or preferred Capital Stock, as
the case may be); provided that:

    

    (i)         
  the principal amount (or accreted value, if applicable) of such
Indebtedness (or preferred Capital Stock, as the case may be) does not exceed
the principal amount (or accreted value, if applicable) of the Indebtedness (or
preferred Capital Stock, as the case may be) so extended, refinanced, renewed,
replaced, defeased or refunded (plus all accrued interest thereon and the amount
of all fees, expenses and premiums incurred in connection
therewith);

    

    (ii)          such
Indebtedness (or preferred Capital Stock, as the case may be) has a final
maturity date later than the final maturity date of, and has a weighted average
life to maturity equal to or greater than the weighted average life to maturity
of, the Indebtedness (or preferred Capital Stock, as the case may be) being
extended, refinanced, renewed, replaced, defeased or refunded;

    

    (iii)         other
than with respect to Permitted Phase I Government Debt, the terms of such
Indebtedness (or preferred Capital Stock, as the case may be), taken as a whole,
are not more restrictive to the applicable obligor than the Indebtedness (or
preferred Capital Stock, as the case may be) being extended, refinanced,
renewed, replaced, defeased or refunded (other than with respect to interest
rates, fees, liquidation preferences, premiums and no call periods); provided, however, with respect to
Permitted Phase II Government Debt, such Indebtedness is provided by (x) the United States
government (or any agency or instrumentality thereof) or (y) a commercial bank and
guaranteed by the United States government (or any agency or instrumentality
thereof), in each case, in connection with the ATVM Program or any successor,
replacement or similar program thereto; and

    

    (iv)          with
respect to Permitted Phase I Government Debt, (x) the terms of such
Indebtedness, taken as a whole, are not materially more restrictive to the
applicable obligor than the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded and (y) such Indebtedness is
provided by the United States government (or an agency or instrumentality
thereof) in connection with the ATVM Program or any successor, replacement or
similar program thereto.

    

    
      
        
           

        

        
          A-32

          
            

          

        

        
           

        

      

    

    

    “Permitted Second Lien Debt”
has the meaning given to such term in the Existing Credit
Agreement.

    

    “Person” means an individual,
partnership, corporation, limited liability company, business trust, joint stock
company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

    

    “Plan” means, at a particular
time, any employee pension benefit plan (other than a multiemployer plan as
defined in Section 4001(a)(3) of ERISA) that is subject to the provisions of
Title IV of ERISA or Section 412 of the Code and in respect of which the
Borrower or a Commonly Controlled Entity is (or, if such plan were terminated at
such time, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

    

    “Post-Program Approval Timing
Milestones” has the meaning given to such term in Section 8.2(b)(ii)
(Reports).

    

    “Potential Grant Funded Eligible
Project Costs” means the Eligible Project Costs identified on the
Potential Grant Overlap Schedule as being potentially 50% funded by the proceeds
of the Grant.

    

    “Potential Grant Overlap
Schedule” means the document titled “Potential Overlap of Eligible
Project Costs and Grant Funding”, dated September 16, 2009, which document was
previously submitted to and accepted by DOE.

    

    “Prepayment Election Notice”
has the meaning given to such term in the relevant Note.

    

    “Prepayment Price” has the
meaning given to such term in the relevant Note.

    

    “Primary Second Lien Debt”
means Indebtedness of the Borrower or any Subsidiary that (i) has been designated
“Second Priority Additional Debt” pursuant to the Existing Collateral Trust
Agreement and designated as “Primary Second Lien Debt” under the Existing Credit
Agreement, (ii) is on
terms, taken as a whole, that are not more restrictive to the Borrower than the
terms of the Existing Credit Agreement (other than in respect of interest rates,
fees, call features or premiums); provided that a certificate
of a Responsible Officer of the Borrower is delivered to the Administrative
Agent at least five Business Days (or such shorter period as the Administrative
Agent may reasonably agree) prior to the incurrence of such Indebtedness,
together with a description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating thereto, stating that the
Borrower has determined in good faith that such terms and conditions satisfy the
foregoing requirement and such terms and conditions shall be deemed to satisfy
the foregoing requirement unless the Administrative Agent notifies the Borrower
within such period that it disagrees with such determination (including a
reasonable description of the basis upon which it disagrees) and (iii) has a final maturity
date no earlier than six months after the later of (x) the maturity date of any
Term Loans (including any Incremental Term Loans) outstanding at such time and
(y) the maturity date
of any Permitted Additional Notes outstanding at such time; provided that the Outstanding
Amount thereof shall not exceed $4,000,000,000 at any time.

    

    
      
        
           

        

        
          A-33

          
            

          

        

        
           

        

      

    

    

    “Principal Domestic Manufacturing
Property” means any plant in the United States owned or leased by the
Borrower or any Subsidiary of the Borrower, the gross book value (without
deduction of any depreciation reserves) of which on the date as of which the
determination is being made exceeds 0.5% of Consolidated Net Tangible Automotive
Assets and more than 75% of the total production measured by value (as
determined by any two of the following:  the Chairman of the Board of
the Borrower, its President, any Executive Vice President of the Borrower, any
Group Vice President of the Borrower, any Vice President of the Borrower, its
Treasurer or its Controller) of which in the last fiscal year prior to said date
(or such lesser period prior thereto as the plant shall have been in operation)
consisted of one or more of the following:  cars or trucks or related
parts and accessories or materials for any of the foregoing.  In the
case of a plant not yet in operation or of a plant newly converted to the
production of a different item or items, the total production of such plant and
the composition of such production for purposes of this definition shall be
deemed to be the Borrower’s best estimate (determined as aforesaid) of what the
actual total production of such plant and the composition of such production
will be in the 12 months following the date as of which the determination is
being made.

    

    “Principal Instrument Delivery
Date” means the date on which the conditions precedent set forth in
Section 5.1 (Conditions
Precedent to the Principal Instrument Delivery Date) shall have been
satisfied or waived, in each case in the sole discretion of DOE and DOE delivers
the Principal Instruments to FFB.

    

    “Principal Instruments” means
each of the documents or instruments required to be delivered by the Secretary
pursuant to Section 4.2 of the Note Purchase Agreement.

    

    “Principal Trade Names” means
each of the trademarks listed under the heading “Principal Trade Names” on
Schedule 1.1F to the Existing Credit Agreement and all other Trademarks
consisting of or containing any of the trademarks listed under the heading
“Principal Trade Names” on Schedule 1.1F to the Existing Credit Agreement or any
variation or simulation thereof.

    

    “Program Approval” means, with
respect to any Project or Sub-Program, formal approval of such Project or
Sub-Program by the officer, employee, committee or group (including the board of
directors of the Borrower or any committee thereof, where applicable) that has
authority to provide such formal approval under the Borrower’s then existing
procedures and policies with respect to delegation of authority of the
Borrower.

    

    
      
        
           

        

        
          A-34

          
            

          

        

        
           

        

      

    

    

    “Program Approval Date” means
the date of any Program Approval.

    

    “Program Financing Agreement”
means the Program Financing Agreement, dated as of September 16, 2009, between
FFB and the Secretary of Energy.

    

    “Program Requirements” means
Section 136 and the Applicable Regulations.

    

    “Prohibited Jurisdiction”
means any country or jurisdiction, from time to time, that is the subject of
sanctions or restrictions promulgated or administered by any Federal
Governmental Authority of the United States.

    

    “Prohibited Person” means any
Person:

    
 

    (i)          
 that is named, or is owned or controlled by, or, where applicable, acting
for or on behalf of, any person or entity that is named on, the most current
list of “Specially Designated Nationals and Blocked Persons” (Appendix A to 31
CFR chapter V) as published by OFAC at its official website,
http://www.treas.gov/offices/enforcement/ofac/sdn/, or at any replacement
website or other replacement official publication of such list (the “SDN List”); or

    

    (ii)           who
is an Affiliate of or affiliated with a Person listed above.  Solely
for the purposes of the definition of “Prohibited Person,” “Affiliate” means,
with respect to any Person, any other Person which, directly or indirectly,
controls, is controlled by, or is under common control with, such
Person.  Solely for the purposes of this definition of “Affiliate,”
“control” (together with the correlative meanings of “controlled by” and “under
common control with”) means possession, directly or indirectly, to direct or
cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by contract, or
otherwise.

    

    “Project A” means the Project,
including any Sub-Programs thereof, described as “Project A” in the Project
Business Plan.

    

    “Project A Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project B” means the Project,
including any Sub-Programs thereof, described as “Project B” in the Project
Business Plan.

    

    
      
        
           

        

        
          A-35

          
            

          

        

        
           

        

      

    

    

    “Project B Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project Business Plan” means
the business plan, substantially in the form of the “Sample Project Business
Plan”, dated June 23, 2009, previously submitted to and accepted by DOE or in
such other form as may be acceptable to DOE delivered by the Borrower to DOE
pursuant to Section 5.1(n) (Conditions Precedent to the
Principal Instrument Delivery Date), as such plan may be amended from
time to time with the approval of DOE in accordance with Section 8.2(b)(ii)
(Reports).

    

    “Project C” means the Project,
including any Sub-Programs thereof, described as “Project C” in the Project
Business Plan.

    

    “Project C Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project Costs” means the
costs of any Project.

    

    “Project D” means the Project,
including any Sub-Programs thereof, described as “Project D” in the Project
Business Plan.

    

    “Project D Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project E” means the Project,
including any Sub-Programs thereof, described as “Project E” in the Project
Business Plan.

    

    “Project E Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project F” means the Project,
including any Sub-Programs thereof, described as “Project F” in the Project
Business Plan.

    

    “Project F Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project G” means the Project,
including any Sub-Programs thereof, described as “Project G” in the Project
Business Plan.

    

    “Project G Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project H” means the Project,
including any Sub-Programs thereof, described as “Project H” in the Project
Business Plan.

    

    
      
        
           

        

        
          A-36

          
            

          

        

        
           

        

      

    

    

    “Project H Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project I” means the Project,
including any Sub-Programs thereof, described as “Project I” in the Project
Business Plan.

    

    “Project I Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project J” means the Project,
including any Sub-Programs thereof, described as “Project J” in the Project
Business Plan.

    

    “Project J Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project K” means the Project,
including any Sub-Programs thereof, described as “Project K” in the Project
Business Plan.

    

    “Project K Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project L” means the Project,
including any Sub-Programs thereof, described as “Project L” in the Project
Business Plan.

    

    “Project L Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project M” means the Project,
including any Sub-Programs thereof, described as “Project M” in the Project
Business Plan.

    

    “Project M Maximum Loan
Amount” has the meaning given to such term in the definition of “Maximum
Total Loan Amount”.

    

    “Project Maximum Loan Amount”
means, (i) with respect
to Project A, the Project A Maximum Loan Amount, (ii) with respect to Project
B, the Project B Maximum Loan Amount, (iii) with respect to Project
C, the Project C Maximum Loan Amount, (iv) with respect to Project
D, the Project D Maximum Loan Amount, (v) with respect to Project E,
the Project E Maximum Loan Amount, (vi) with respect to Project
F, the Project F Maximum Loan Amount, (vii) with respect to Project
G, the Project G Maximum Loan Amount, (viii) with respect to Project
H, the Project H Maximum Loan Amount, (ix) with respect to Project
I, the Project I Maximum Loan Amount, (x) with respect to Project J,
the Project J Maximum Loan Amount, (xi) with respect to Project
K, the Project K Maximum Loan Amount, (xii) with respect to Project
L, the Project L Maximum Loan Amount and (xiii) with respect to Project
M, the Project M Maximum Loan Amount.

    

    
      
        
           

        

        
          A-37

          
            

          

        

        
           

        

      

    

    

    “Project Modification Notice”
has the meaning given to such term in Section 3.6(c)(iii) (Prepayments).

    

    “Project Modification Prepayment
Amount” has the meaning given to such term in Section 3.6(c)(iii) (Prepayments).

    

    “Project Repayment Event Date”
means, for any Project or Sub-Program, the date that is the earliest of (i) if Program Approval has
been achieved for such Project or Sub-Program, the date on which such Project or
Sub-Program is canceled prior to achievement of the Timing Milestone identified
as “Job 1” in the Project Business Plan for such Project or Sub-Program, (ii) if Program Approval has
not been achieved for such Project or Sub-Program, the date on which such
Project or Sub-Program is canceled prior to the Estimated Program Approval Date,
(iii) the date on which
such Project or Sub-Program is modified to the extent that any costs associated
with such Project no longer constitute Eligible Project Costs or (iv) the date as of which
achievement of any Timing Milestone for such Project or Sub-Program has been
delayed by at least 24 months.

    

    “Project Targets” means each
of the Fuel Economy Targets, the Timing Milestones and the Fuel Economy
Requirement.

    

    “Projects” means each or all
of the projects identified in the Project Business Plan delivered by the
Borrower to DOE as required under Section 5.1(n) (Conditions Precedent to the
Principal Instrument Delivery Date).

    

    “Proposed Substitute Eligible Project
Costs” has the meaning given to such term in Section 7.12 (Federal
Funding).

    

    “PTO” has the meaning given to
such term in Section 7.4(f)(ii) (Additional Collateral,
Etc.).

    

    “Quarterly Payment Date” means
each March 15, June 15, September 15 and December 15, or if not a Business Day,
the next Business Day.

    

    “Quarterly Reporting Date” has
the meaning given to such term in Section 8.2(b)(i) (Reports).

    

    “Recovery Event” means any
settlement of or payment in respect of any property or casualty insurance claim,
any warranty or any condemnation proceeding relating to any ATVM
Collateral.

    

    “Reimbursement Amount” means
all amounts paid by DOE to FFB pursuant to Section 6.3 of the Program Financing
Agreement which relate to or arise out of FFB providing or having provided
financing under the Notes.

    

    
      
        
           

        

        
          A-38

          
            

          

        

        
           

        

      

    

    

    “Reimbursement Obligation” has
the meaning given to such term in Section 4.1(a)(i) (Reimbursement
Obligations).

    

    “Reinvestment Deferred Amount”
means with respect to any Reinvestment Event, the aggregate Net Cash Proceeds
received by the Borrower in connection therewith that are not applied to prepay
the Advances made under Note B pursuant to Section 3.6(c)(i) (Prepayments) as a result of
the delivery of a Reinvestment Notice.

    

    “Reinvestment Event” any
Disposition of ATVM Collateral or Recovery Event in respect of which the
Borrower has delivered a Reinvestment Notice.

    

    “Reinvestment Notice” means a
written notice executed by a Responsible Officer stating that no Event of
Default has occurred and is continuing and that the Borrower intends and expects
to use all or a specified portion of the Net Cash Proceeds received by the
Borrower or any of its Subsidiaries of a Disposition of ATVM Collateral or a
Recovery Event to the repair of such ATVM Collateral or the purchase of
replacement ATVM Collateral.

    

    “Reinvestment Prepayment
Amount” means with respect to any Reinvestment Event, the Reinvestment
Deferred Amount relating thereto less any amount expended prior to the relevant
Reinvestment Prepayment Date to acquire replacement ATVM Collateral or repair
such ATVM Collateral.

    

    “Reinvestment Prepayment Date”
means with respect to any Reinvestment Event, the earlier of (i) the date occurring 180
days after such Reinvestment Event and (ii) the date on which the
Borrower shall have determined not to, or shall have otherwise ceased to,
acquire replacement ATVM Collateral or repair such ATVM Collateral with all or
any portion of the relevant Reinvestment Deferred Amount.

    

    “Repayment Calculation Notice”
has the meaning given to such term in Section 3.6(c)(iii) (Prepayments).

    

    “Replacement Credit Agreement”
has the meaning given to such term in Section 7.1(b) (Amendments to Certain
Agreements).

    

    “Reporting Date” means each
Quarterly Reporting Date and Semiannual Reporting Date.

    

    “Requested Advance Date”
means, for any Advance Request, the date requested by the Borrower for FFB to
make an Advance under the relevant Note.

    

    “Requirements of Law” means,
as to any Person, the Certificate of Incorporation and By-Laws or other
organizational or governing documents of such Person, and any Law.

    

    
      
        
           

        

        
          A-39

          
            

          

        

        
           

        

      

    

    

    “Responsible Officer” means
the chief executive officer, president, chief accounting officer, chief
financial officer, treasurer, assistant treasurer or, for purposes of Section
8.3 (Notices) only, the
secretary and, for the purposes of Section 8.3(b) only, the general counsel of
the Borrower.

    

    “Restricted Payment” has the
meaning given to such term in Section 9.6 (Restricted
Payments).

    

    “Restricted Pledgee Group”
means the collective reference to Ford Capital B.V., Ford España S.A., Ford
Automotive Holdings, Ford Deutschland Holding Gmbh, Grupo Ford, Ford Canada,
Ford Argentina, Ford South Africa and Ford Brazil, and each of their respective
Subsidiaries (excluding any such Subsidiaries that are bona fide joint
ventures).

    

    “Revolving Commitment
Increase” has the meaning given to such term in the Existing Credit
Agreement.

    

    “Revolving Commitments” has
the meaning given to such term in the Existing Credit Agreement.

    

    “Revolving Termination Date”
has the meaning given to such term in the Existing Credit
Agreement.

    

    “Sale and Leaseback
Transactions” has the meaning given to such term in Section 9.9 (Sales and
Leasebacks).

    

    “SEC” means the Securities and
Exchange Commission, any successor thereto and any analogous Governmental
Authority.

    

    “Second Quarter 2009 10−Q” has
the meaning given to such term in Section 6.1 (Financial
Condition).

    

    “Section 136” means Section
136 of the Energy Independence and Security Act of 2007 (Pub.L.
110-140).

    

    “Security Documents” means,
collectively, the ATVM Collateral Security Documents and the Existing Collateral
Security Documents.

    

    “Semiannual Reporting Date”
has the meaning given to such term in Section 8.2(b)(iii) (Reports).

    

    “Senior Obligations” has the
meaning given to such term in Section 9.13 (Limitation on Senior
Obligations).

    

    
      
        
           

        

        
          A-40

          
            

          

        

        
           

        

      

    

    

    “Significant Guarantor” means
on any date of determination, each Guarantor (i) whose total assets at the
last day of the four fiscal quarters ending on the last day of the most recent
fiscal quarter for which financial statements have been delivered pursuant to
Section 8.1(b) (Financial
Statements) were equal to or greater than 10% of the sum of (x) the Consolidated Total
Automotive Assets at such date plus (y) the equity value of the
Capital Stock of FMCC owned, directly or indirectly, by the Borrower as
reflected in the most recent financial statements of FMCC delivered pursuant to
Section 8.1(b) (Financial
Statements) or (ii) for the purpose of any
particular representation, covenant or default in this Agreement, that, when
combined with each other Guarantor that has breached such representation or
covenant or is the subject of such default, would constitute a Significant
Guarantor under the foregoing clause (i).

    

    “Specified ATVM Collateral
Disposition” means a Disposition of ATVM Collateral other than (i) a Disposition for scrap or
(ii) a single
Disposition or a Disposition that is one of a series of related Dispositions, in
either case for Net Cash Proceeds of less than $750,000.

    

    “Specified Liens” means (i) Designated Liens and
(ii) other liens
securing obligations in an aggregate Outstanding Amount not exceeding
$3,000,000,000.

    

    “Sub-Program” means any
sub-program included in any Project for which sub-program the Borrower has
established Timing Milestones in the Project Business Plan separate from the
Project comprised by such sub-program.

    

    “Subsidiary” means, with
respect to any Person, any corporation, association, joint venture, partnership,
limited liability company or other business entity (whether now existing or
hereafter organized) of which at least a majority of the Voting Stock is, at the
time as of which any determination is being made, owned or controlled by such
Person or one or more subsidiaries of such Person or by such Person and one or
more subsidiaries of such Person.  Unless otherwise qualified, all
references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
to a Subsidiary or Subsidiaries of the Borrower.

    

    “Subsidiary Obligations” means
with respect to any Subsidiary, all obligations and liabilities of such
Subsidiary which may arise under or in connection with the Guarantee or any
other Transaction Document, in each case whether on account of guarantee
obligations, reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including all fees and disbursements of counsel to DOE or FFB) that
are required to be paid by such Subsidiary pursuant to the terms of the
Guarantee or any other Transaction Document.

    

    “Technology Components” means
the technologies to be used in any Project.

    

    
      
        
           

        

        
          A-41

          
            

          

        

        
           

        

      

    

    

    “Term Loan Maturity Date” has
the meaning given to such term in the Existing Credit Agreement.

    

    “Term Loans” has the meaning
given to such term in the Existing Credit Agreement.

    

    “Timing Milestones” means
(x) with respect to any
Project or Sub-Program that has achieved Program Approval as of such date, each
of verification prototype (VP), launch readiness (LR) and Job 1 (J1) and (y) with respect to any
Project or Sub-Program for which Program Approval has not been achieved as of
such date, the Estimated Program Approval Date, in each case as set forth in the
Project Business Plan.

    

    “Total Available Revolving
Commitments” has the meaning given to such term in the Existing Credit
Agreement.

    

    “Total Pre-Availability Period
Eligible Project Costs” means, with respect to any Project, the total
amount of Estimated Total Eligible Project Costs paid prior to December 16,
2008, as specified on the page titled “Project Business Plan – Financials” under
the heading “Total Pre-Avail Eligible Cost” of the Project Business
Plan.

    

    “Trademark Security Agreement”
means that Trademark Security Agreement dated as of December 15, 2006 made by
the Borrower in favor of the Existing Collateral Trustee.

    

    “Trademarks” means trademarks,
trade names, business names, trade styles, service marks, logos and other source
or business identifiers, and in each case, all goodwill associated therewith,
and all registrations and recordations thereof and all rights to obtain such
renewals and extensions.

    

    “Transaction Documents” means,
collectively, each Loan Document, each Existing Collateral Security Document and
each other agreement, certificate, document or instrument which the parties
hereto expressly designate as a “Transaction
Document”.

    

    “Transmission Code” means the
code delivered by DOE to each of the Authorized Transmitters of the
Borrower.

    

    “Uniform Commercial Code”
means the Uniform Commercial Code as adopted in the State of New
York.

    

    “Uniquely Identify” has the
meaning given to such term in the ATVM Collateral Security
Agreement.  “Uniquely Identified” and “Uniquely Identifying” shall
have a corresponding meaning.

    

    “United States” and “U.S.” means the United States
of America.

    

    
      
        
           

        

        
          A-42

          
            

          

        

        
           

        

      

    

    

    “USA PATRIOT Act” means the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Pub.L. 107-56).

    

    “USCO” has the meaning given
to such term in Section 6.14(d) (Security
Documents).

    

    “Volvo” means Ford VHC AB, a
company organized under the laws of Sweden.

    

    “Volvo Group Member” means
each of Volvo, Volvo Car Holding Corporation, Volvo Car Corporation, Volvo
Holding Company Inc., Volvo Cars of North America, LLC, Ford BH 1 Ltd. and Ford
BH 2 Ltd.

    

    “Volvo Trade Name” means all
Trademarks owned by or licensed to the Borrower and its Subsidiaries consisting
of or containing “Volvo” or any variation or simulation thereof.

    

    “Voting Stock” means with
respect to any Person, such Person’s Capital Stock having the right to vote for
election of directors (or the equivalent thereof) of such Person under ordinary
circumstances.

    

    
      
        
           

        

        
          A-43

          
            

          

        

        
           

        

      

    

    

    Schedule
6.13(a) to the

    Arrangement
Agreement 

    Guarantors

    

    

    
      	
              GUARANTOR

            	
              NOTICE
      ADDRESS

            
	
              3000
      Schaefer Road Company

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      BH 1 Ltd.*

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      BH 2 Ltd.*

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      European Holdings LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      Global Technologies, LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      Holdings LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      International Capital LLC*

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      Mexico Holdings, Inc.*

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      Motor Service Company

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      - UAW Holdings, LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      South America Holdings, LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      Trading Company, LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Ford
      Component Sales, LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Grupo
      Ford S. de R.L. de C.V.*

            	
              Attention:
      Legal Representative

              Circuito
      Guillermo González Camarena # 1500

              Col.
      Centro Ciudad Santa Fe

              C.P.
      01210

              Delegación
      Álvaro Obregón

              México,
      D.F.

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              GUARANTOR

            	
              NOTICE
      ADDRESS

            
	
              Volvo
      Cars of North America, LLC

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            
	
              Volvo
      Holding Company Inc.*

            	
              Attention:  Secretary’s
      Office

              One
      American Road

              Dearborn,
      Michigan  48126

            

    

    

    *
Guaranty has limited recourse to the pledged assets of the relevant
entity.

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
O

    

    TO
THE

    

    ARRANGEMENT
AGREEMENT

    

    

    FORM OF
NOTE A

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

    

    
      	
              FOR
      FFB USE ONLY

            	 
      	 
      	
              Note

              Date

            	 
      	
              September 16, 2009

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Note
      Identifier:

            	 
      	 
      	
              Place

              of
      Issue

            	 
      	
              Washington, DC

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Purchase
      Date:

            	 
      	 
      	
              Last
      Day

              for
      an

              Advance
      (¶3)

            	 
      	
              June 30, 2012

            
	  
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	
              Maximum

              Principal

              Amount
      (¶4)

            	 
      	
              $4,377,000,000

            
	
              Maturity

              Date
      (¶5)

            	 
      	
              June 15, 2022

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Payment

              Dates

              (¶7)

            	 
      	
              March 15, June
      15

              September
      15, &

              December 15 of
      each year

            	 
      	
              First

              Principal
      Payment

              Date
      (¶8)

            	 
      	
              September 15,
  2012

            

    

    

    

    Security

    Instruments

    
      	
              (¶19)

            	
              as listed in Schedule 1
    hereto.

            	 
      

    

    

    FUTURE
ADVANCE PROMISSORY NOTE

    

    NOTE
A

    

    1.           
 Promise to
Pay.

    

    FOR VALUE RECEIVED, FORD MOTOR
COMPANY, a corporation organized under the laws of Delaware (the "Borrower", which term
includes any successors or assigns), promises to pay the FEDERAL FINANCING BANK ("FFB"), a body
corporate and instrumentality of the United States of America (FFB, for so long
as it shall be the holder of this Note, and any successor or assignee of FFB,
for so long as such successor or assignee shall be the holder of this Note,
being the "Holder"), at the
times, in the manner, and with interest at the rates to be established as
hereinafter provided, such amounts as may be advanced from time to time by FFB
to or for the account of the Borrower under this Note (each such amount being an
"Advance" and
more than one such amounts being "Advances").

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 1

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

    
2.           
 Reference to
Certain Agreements.

    

    (a) Program Financing
Agreement.  This Note is one of the "Notes" referred to in, and
entitled to the benefits of, the Program Financing Agreement dated as of
September 16, 2009, made by and between FFB and the Secretary of Energy (the
"Secretary")
(such agreement, as it may be amended, supplemented, and restated from time to
time in accordance with its terms, being the "Program Financing
Agreement").

    

    (b) Note Purchase
Agreement.  This Note is one of the "Notes" referred to in, and
entitled to the benefits of, the Note Purchase Agreement dated as of even date
herewith, made by and among FFB, the Borrower, and the Secretary (such
agreement, as it may be amended, supplemented, and restated from time to time in
accordance with its terms, being the "Note Purchase
Agreement").

    

    
      	
              3.

            	
              Advances; Advance
      Requests; Last Day for
Advances.

            

    

    

    (a) Subject to the terms and conditions
of the Note Purchase Agreement, FFB shall make Advances under this Note in the
amounts, at the times, and to the accounts requested by the Borrower from time
to time, in each case upon delivery to FFB of a written request by the Borrower
for an Advance under this Note, in the form of request attached to the Note
Purchase Agreement as Exhibit A thereto (each such request being an "Advance Request"),
completed as prescribed in the Note Purchase Agreement.

    

    (b) To be effective, an Advance Request
must first be delivered to the United States Department of Energy (the “Department of
Energy”) for approval and be approved by or on behalf of the Secretary in
writing, and such Advance Request, together with written notification of the
Secretary's approval thereof, must be received by FFB on or before the third
Business Day before the particular calendar date specified in such Advance
Request that the Borrower requests to be the date on which the respective
Advance is to be made.

    

    (c) The Borrower hereby agrees that
FFB, for its purposes, may consider any Advance Request approved by or on behalf
of the Secretary and delivered to FFB in accordance with the terms of the Note
Purchase Agreement to be an accurate representation of the Borrower's request
for an Advance under this Note and the Secretary's approval of that Advance
Request.

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 2

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    
      	
              4.

            	
              Principal Amount of
      Advances; Maximum Principal
Amount.

            

    

    

    The principal amount of each Advance
shall be the amount specified in the respective Advance Request; provided, however, that the
aggregate principal amount of all Advances made under this Note may not exceed
the particular amount specified on page 1 of this Note as the "Maximum
Principal Amount."

    

    5.          
 Maturity
Date.

    

    This Note, and each Advance made
hereunder, shall mature on the particular date specified on page 1 of this Note
as the "Maturity Date" (such date being the "Maturity
Date").

    

    
      	
              6.

            	
              Computation of
      Interest on Each Advance.

            

    

    

    (a) Subject to paragraphs 11 and 14 of
this Note, interest on the outstanding principal of each Advance shall accrue
from the date on which the respective Advance is made to the date on which such
principal is due.

    

    (b) Interest on each Advance shall be
computed on the basis of (1) actual days elapsed from (but not including) the
date on which the respective Advance is made (for the first payment of interest
due under this Note for the respective Advance) or the date on which the payment
of interest was last due (for all other payments of interest due under this Note
for the respective Advance), to (and including) the date on which payment is
next due, and (2) a year of 365 days.

    

    (c) The interest rate applicable to
each Advance shall be established by FFB at the time that the respective Advance
is made on the basis of the determination made by the Secretary of the Treasury
pursuant to section 136 of the Energy Independence and Security Act of 2007
(Pub. L. No. 110-140, 121 Stat. 1492, 1514), as amended (the "Program Authority");
provided, however, that the
shortest maturity used as the basis for any basic interest rate determination
shall be the remaining maturity of the most recently auctioned United States
Treasury bills having the shortest maturity of all United States Treasury bills
then being regularly auctioned.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      A - page 3

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    
      	
              7.

            	
              Payment of Interest;
      Payment Dates.

            

    

    

    Interest accrued on the outstanding
principal balance of each Advance shall be due and payable on each of the
particular dates specified on page 1 of this Note as "Payment Dates" (each such
date being a "Payment
Date"), beginning on the first Payment Date to occur after the date on
which such Advance is made, up through and including the Maturity
Date.

    

    8.          
 Payment of
Principal.

    

    (a) The principal amount of each
Advance shall be payable in installments, which payments shall be due beginning
on the particular date specified as the "First Principal Payment Date" on page 1
of this Note (such date being the "First Principal Payment
Date"), and shall be due on each Payment Date to occur thereafter until
the principal of the respective Advance is repaid in full on or before the
Maturity Date; provided, however, that with
respect to each Advance that is made after the First Principal Payment Date,
principal installments shall be due beginning on the second Payment Date to
occur after the date on which the respective Advance is made.

    

    (b) With respect to each Advance, the
amount of principal due on the First Principal Payment Date, on each Payment
Date to occur thereafter, and on the Maturity Date shall be, in each case,
substantially equal to the amount of every other quarterly installment of
principal and shall be sufficient, when added to all other such quarterly
installments of equal principal, to repay the principal amount of the respective
Advance in full on the Maturity Date.

    

    9.         
  Business
Days.

    

    (a) Whenever any Payment Date or the
Maturity Date shall fall on a day on which either FFB or the Federal Reserve
Bank of New York is not open for business, the payment which would otherwise be
due on such Payment Date or the Maturity Date shall be due on the first day
thereafter on which FFB and the Federal Reserve Bank of New York are both open
for business (any such day being a "Business
Day").

    

    (b) In the case of a Payment Date
falling on a day other than a Business Day, the extension of time for making the
payment that would otherwise be due on such Payment Date shall (1) be taken into
account in establishing the interest rate for each Advance, and (2) be included
in computing interest due in connection with such payment and excluded in
computing interest due in connection with the next payment.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      A - page 4

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    (c) In the case of the Maturity Date
falling on a day other than a Business Day, the extension of time for making the
payment that would otherwise be due on the Maturity Date shall (1) be taken into
account in establishing the interest rate for each Advance, and (2) be included
in computing interest due in connection with such payment.

    

    10.          Manner of Making
Payments.

    

    (a) For so long as FFB is the Holder of
this Note, each payment under this Note shall be paid in immediately available
funds by electronic funds transfer to the account of the United States Treasury
(for credit to the subaccount of FFB) maintained at the Federal Reserve Bank of
New York specified by FFB in a written notice to the Borrower, or to such other
account as may be specified from time to time by FFB in a written notice to the
Borrower.

    

    (b) In the event that FFB is not the Holder of this Note,
then each payment under this Note shall be made in immediately available funds
by electronic funds transfer to such account as shall be specified by the Holder
in a written notice to the Borrower.

    

    11.         
Late
Payments.

    

    (a) In the event that any payment of
any amount owing under this Note is not made when and as due (any such amount
being then an "Overdue
Amount"), then the amount payable shall be such Overdue Amount plus
interest thereon (such interest being the "Late Charge")
computed in accordance with this subparagraph (a):

    

    (1) The Late Charge shall accrue from
the scheduled date of payment for the Overdue Amount (taking into account
paragraph 9 of this Note) to the date on which payment is made.

    

    (2) The Late Charge shall be computed
on the basis of (A) actual days elapsed from (but not including) the scheduled
date of payment for such Overdue Amount (taking into account paragraph 9 of this
Note) to (and including) the date on which payment is made, and (B) a year of
365 days.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      A - page 5

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    (3) The Late Charge shall accrue at a
rate (the "Late Charge
Rate") equal to one and one-half times the rate to be determined by the
Secretary of the Treasury taking into consideration the prevailing market yield
on the remaining maturity of the most recently auctioned 13-week United States
Treasury bills.

    

    (4) The initial Late Charge Rate shall
be in effect until the earlier to occur of either (A) the date on which payment
of the Overdue Amount and the amount of the accrued Late Charge is made, or (B)
the first Payment Date to occur after the scheduled date of payment for such
Overdue Amount.  In the event that the Overdue Amount and the amount
of the accrued Late Charge are not paid on or before the such Payment Date, then
the amount payable shall be the sum of the Overdue Amount and the amount of the
accrued Late Charge, plus a Late Charge on such sum accruing at a new Late
Charge Rate to be then determined in accordance with the principles of clause
(3) of this subparagraph (a).  For so long as any Overdue Amount
remains unpaid, the Late Charge Rate shall be re-determined in accordance with
the principles of clause (3) of this subparagraph (a) on each Payment Date to
occur thereafter, and shall be applied to the Overdue Amount and all amounts of
the accrued Late Charge to the date on which payment of the Overdue Amount and
all amounts of the accrued Late Charge is made.

    

    (b) Nothing in subparagraph (a) of this
paragraph 11 shall be construed as permitting or implying that the Borrower may,
without the written consent of the Holder, modify, extend, alter or affect in
any manner whatsoever (except as explicitly provided herein) the right of the
Holder to receive any and all payments on account of this Note on the dates
specified in this Note.

    

    12.          Final Due
Date.

    

    Notwithstanding anything in this Note
to the contrary, all amounts outstanding under this Note remaining unpaid as of
the Maturity Date shall be due and payable on the Maturity Date.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      A - page 6

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    13.          Application of
Payments.

    

    Each payment made on this Note shall be
applied first to the payment of Late Charges (if any) payable under paragraphs
11 and 15 of this Note, then to the payment of premiums (if any) payable under
paragraph 14 of this Note, then to the payment of accrued interest, then on
account of outstanding principal of this Note.

    

    
      	
              14.

            	
              Prepayments.

            

    

    

    (a) The Borrower may elect to prepay
all or any portion of the outstanding principal amount of any Advance made under
this Note, or to prepay this Note in its entirety, in the manner, at the price,
and subject to the limitations specified in this paragraph 14 (each such
election being a "Prepayment
Election").

    

    (b) The Borrower shall deliver to FFB
(and if FFB is not the Holder, then also to the Holder) written notification of
each Prepayment Election (each such notification being a "Prepayment Election
Notice"), specifying:

    

    (1) the Advance Identifier that FFB
assigned to the respective Advance (as provided in the Note Purchase
Agreement);

    

    (2) the particular date on which the
Borrower intends to prepay the respective Advance (such date being the "Intended Prepayment
Date" for the respective Advance), which date must be a Business Day;
and

    

    (3) the amount of principal of the
respective Advance that the Borrower intends to prepay, which amount may be
either:

    

    (A) the total outstanding principal
amount of such Advance; or

    

    (B) an amount less than the total
outstanding principal amount of such Advance (any such amount being a "Portion").

    

    (c) To be effective, a Prepayment
Election Notice must be received by FFB (and if FFB is not the Holder, then also
by the Holder) on or before the fifth Business Day before the date specified
therein as the Intended Prepayment Date for the respective Advance or
Portion.

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 7

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    (d) The Borrower shall pay to the
Holder a price for the prepayment of any Advance or Portion (such price being
the "Prepayment
Price" for such Advance or Portion) determined as follows:

    

    (1) in the event that the Borrower
elects to prepay the entire outstanding principal amount of any Advance, then
the Borrower shall pay to the Holder a Prepayment Price for such Advance equal
to the sum of:

    

    (A) the price for such Advance that
would, if such Advance (including all unpaid interest accrued thereon through
the Intended Prepayment Date) were purchased by a third party and held to the
Maturity Date, produce a yield to the third-party purchaser for the period from
the date of purchase to the Maturity Date substantially equal to the interest
rate that would be set on a loan from the Secretary of the Treasury to FFB to
purchase an obligation having a payment schedule identical to the payment
schedule of such Advance for the period from the Intended Prepayment Date to the
Maturity Date; and

    

    (B) all unpaid Late Charges (if any)
accrued on such Advance through the Intended Prepayment Date;

    

    (2) in the event that the Borrower
elects to prepay a Portion of any Advance, then the Borrower shall pay to the
Holder a Prepayment Price for such Portion that would equal such Portion's pro
rata share of the Prepayment Price that would be required for a prepayment of
the entire principal amount of such Advance (determined in accordance with the
principles of clause (1) of this subparagraph (d)); and

    

    (3) in the event that the Borrower
elects to prepay this Note in its entirety, then the Borrower shall pay to the
Holder an amount equal to the sum of the Prepayment Prices for all outstanding
Advances (determined in accordance with the principles of clause (1) of this
subparagraph (d)).

    

    The price
described in subclause (A) of clause (1) of this subparagraph (d) shall be
calculated by the Secretary of the Treasury as of the close of business on the
second Business Day before the Intended Prepayment Date, using standard
calculation methods of the United States Department of the
Treasury.  FFB shall deliver by facsimile transmission (fax) to the
Borrower a written notice by 12:00 noon (Washington, DC, time) on the Business
Day immediately preceding the Intended Prepayment Date specifying the Prepayment
Price for the Advance or Portion and setting out separately principal, accrued
interest, premium (if any), and Late Charges (if any); provided, however, that
failure on the part of FFB to deliver any notice of the Prepayment Price by
12:00 noon (Washington, DC, time) or failure on the part of the Borrower to
receive any notice of the Prepayment Price shall not relieve the Borrower of the
payment obligation described in subparagraph (e) of this paragraph 14, but
rather shall give rise to a responsibility on the part of the Borrower to make
inquiry to FFB for the Purchase Price.

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 8

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    (e) Payment of the Prepayment Price for
any Advance or any Portion shall be due to the Holder before 3:00 p.m.
(Washington, DC, time) on the Intended Prepayment Date for such Advance or
Portion.

    

    (f) Each prepayment of a Portion shall,
as to the principal amount of such Portion, be subject to a minimum amount equal
to $100,000.00 of principal; except that the minimum principal amount limitation
shall not apply to a prepayment of a Portion if:

    

    (1) the prepayment is made to satisfy
the Borrower's obligation to make a mandatory prepayment under the "Security
Instruments" (as that term is defined in paragraph 19 of this Note);
and

    

    (2) the Borrower has certified to that
fact in the respective Prepayment Election Notice.

    

    (g) In the event that the Borrower
makes a Prepayment Election with respect to any Portion of an Advance, then the
Prepayment Price paid for such Portion will be applied as provided in paragraph
13 of this Note, and, with respect to application to outstanding principal, such
Prepayment Price shall be applied to principal installments in the inverse order
of maturity.

    

    (h) In the event that the Borrower
makes a Prepayment Election with respect to any Portion of an Advance, then the
outstanding principal amount of such Advance, from and after such partial
prepayment, shall be due and payable in accordance with this subparagraph
(h).

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 9

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    (1) The amount of the quarterly
principal installments that will be due after such partial prepayment shall be
equal to the quarterly installments of equal principal that were due in
accordance with the level principal repayment schedule that applied to such
Advance immediately before such partial prepayment.

    

    (2) The equal payments of principal
shall be due beginning on the first Payment Date to occur after such partial
prepayment, and shall be due on each Payment Date to occur thereafter up through
and including the date on which the entire principal amount of such Advance and
all unpaid interest (and Late Charges, if any) accrued thereon, are
paid.

    

    
      	
              15.

            	
              Rescission of
      Prepayment Elections; Late Charges for Late Payments of Prepayment
      Prices.

            

    

    

    (a) The Borrower may rescind any
Prepayment Election made in accordance with paragraph 14 of this Note, but only
in accordance with this paragraph 15.

    

    (b) The Borrower shall deliver to FFB
written notification of each rescission of a Prepayment Election (each such
notification being an "Election Rescission
Notice") specifying the particular Advance for which the Borrower wishes
to rescind such Prepayment Election, which specification must make reference to
the particular "Advance Identifier" (as that term is defined in the Note
Purchase Agreement) that FFB assigned to such Advance (as provided in the Note
Purchase Agreement).  The Election Rescission Notice may be delivered
by facsimile transmission to FFB at (202) 622-0707 or at such other facsimile
number or numbers as FFB may from time to time communicate to the
Borrower.

    

    (c) To be effective, an Election
Rescission Notice must be received by FFB not later than 3:30 p.m. (Washington,
DC, time) on the second Business Day before the Intended Prepayment
Date.

    

    (d) In the event that the Borrower (1)
makes a Prepayment Election in accordance with paragraph 14 of this Note, (2)
does not rescind such Prepayment Election in accordance with this paragraph 15,
and (3) does not, before 3:00 p.m. (Washington, DC, time) on the Intended
Prepayment Date, pay to FFB the Prepayment Price described in paragraph 14(d) of
this Note, then a Late Charge shall accrue on any such unpaid amount from the
Intended Prepayment Date to the date on which payment is made, computed in
accordance with the principles of paragraph 11 of this Note.

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 10

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    16.          Amendments to
Note.

    

    To the extent not inconsistent with
applicable law, this Note shall be subject to modification by such amendments,
extensions, and renewals as may be agreed upon from time to time by the Holder
and the Borrower, with the approval of the Secretary.

    

    17.          Certain
Waivers.

    

    The Borrower hereby waives any
requirement for presentment, protest, or other demand or notice with respect to
this Note.

    

    18.          Effective Until
Paid.

    

    Except as provided in section 6.2 of
the Note Purchase Agreement, this Note shall continue in full force and effect
until all amounts due and payable hereunder have been paid in full.

    

    
      	
              19.

            	
              Security Instruments;
      Secretary as "Holder" of Note for Purposes of the Security
      Instruments.

            

    

    

    This Note is one of the notes permitted
to be executed and delivered by, and is entitled to the benefits and security
of, the particular security instruments specified on page 1 of this Note (such
security instruments, as they may have heretofore been, and as they may
hereafter be, amended, supplemented, restated, or consolidated from time to time
in accordance with its or their terms, being, collectively, the "Security
Instruments"), whereby the Borrower pledged and granted a security
interest in certain property of the Borrower, described therein, to secure the
payment and performance of certain obligations owed to the Secretary and any
other Holder of this Note or participation share hereof, as set forth in the
Security Instruments.  For purposes of the Security Instruments, in
consideration of the undertakings by the Secretary set forth in the Program
Financing Agreement and the Note Purchase Agreement, and the affirmation by the
Secretary dated as of even date herewith, delivered by the Secretary to FFB as
provided in the Note Purchase Agreement (the "Secretary's
Affirmation"), the Secretary shall be considered to be, and shall have
the rights, powers, privileges, and remedies of, the Holder of this
Note.

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 11

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    
      	
              20.

            	
              Default and
      Enforcement.

            

    

    

    In case of a default by the Borrower
under this Note or the occurrence of an event of default under the Security
Instruments, then, in consideration of the undertakings by the Secretary set
forth in the Program Financing Agreement and the Note Purchase Agreement, and
the Secretary's Affirmation, the Secretary, in his own name, shall have all
rights, powers, privileges, and remedies of the Holder of this Note, in
accordance with the terms of this Note and the Security Instruments, including,
without limitation, the right to enforce or collect all or any part of the
obligation of the Borrower under this Note or arising as a result of the
Secretary's Affirmation, to file proofs of claim or any other document in any
bankruptcy, insolvency, or other judicial proceeding, and to vote such proofs of
claim.

    

    21.          Acceleration.

    

    The entire unpaid principal amount of
this Note, and all interest thereon, may be declared, and upon such declaration
shall become, due and payable to the Secretary, under the circumstances
described, and in the manner and with the effect provided, in the Security
Instruments.

    

    22.          Governing
Law.

    

    This Note shall be governed by, and
construed and interpreted in accordance with, Federal law and not the law of any
state or locality.  To the extent that a court looks to the laws of
any state to determine or define the Federal law, it is the intention of the
parties hereto that such court shall look only to the laws of the State of New
York without regard to the rules of conflicts of laws.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      A - page 12

              

      

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    IN WITNESS WHEREOF, the
Borrower has caused this Note to be signed in its corporate name and its
corporate seal to be hereunder affixed and attested by its officers thereunto
duly authorized, all as of the day and year first above written.

    

    
      	 
      	 
      	 
      	
              FORD
      MOTOR COMPANY

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              BY:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Signature:

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Print
      Name:

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Title:

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              ATTEST:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Signature:

            	 
      
	 
      	 
      	 
      	 
      	 
      
	
              (SEAL)

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Print
      Name:

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Title:

            	 
      

    

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 13

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD MOTOR
      COMPANY

            

    

     

    SCHEDULE
1

    

    Security
Instruments

    

    Unless
otherwise defined herein, terms defined in the Note and used herein shall have
the meanings given to them in the Note.

    

    
      	
              (1)

            	
              Loan
      Arrangement and Reimbursement Agreement between the Borrower and the
      Department of Energy, dated September 16, 2009 (the “Arrangement
      Agreement”)

            

    

     

    
      	
              (2)

            	
              Guarantee
      made by certain subsidiaries of the Borrower in favor of the Department of
      Energy, FFB and the holders of the notes described therein, dated as of
      September 16, 2009

            

    

    

    
      	
              (3)

            	
              Security
      Agreement made by the Borrower and certain of its subsidiaries in favor of
      Wilmington Trust Company, as collateral trustee (the “Collateral
      Trustee”), dated as of December 15,
2006;

            

    

    

    
      	
              (4)

            	
              Collateral
      Trust Agreement dated as of December 15, 2006 among the Borrower, certain
      of its subsidiaries parties thereto and the Collateral Trustee (the “Collateral Trust
      Agreement”);

            

    

    

    
      	
              (5)

            	
              Each
      of the mortgages and deeds of trust made by the Borrower or any subsidiary
      guarantor in favor of, or for the benefit of, the Collateral Trustee in
      favor of the Secured Parties (as defined in the Collateral Trust
      Agreement);

            

    

    

    
      	
              (6)

            	
              Grant
      of Security Interest in Trademark Rights, effective as of December 15,
      2006 made by the Borrower in favor of the Collateral Trustee under the
      Collateral Trust Agreement;

            

    

    

    
      
        	
                (7)

              	
                each
      other security document (other than any ATVM Collateral Security Document
      (as defined in the Arrangement Agreement)) delivered to the Administrative
      Agent (as defined in the Collateral Trust Agreement) and/or the Collateral
      Trustee granting a Lien (as defined in the Collateral Trust Agreement) on
      any property of any person to secure the Secured Obligations (as defined
      in the Collateral Trust Agreement), including the obligations of the
      Borrower under Note A; and

              

      

    

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      A - page 14

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

      
        	
                DOE
      (ATV)

              	
                FORD MOTOR
      COMPANY

              

      

       

    

    
      	
              (8)

            	
              Intercreditor
      Agreement dated as of September 16, 2009 among Ford-UAW Holdings LLC, the
      Department of Energy, the Borrower, the subsidiaries of the Borrower from
      time to time parties thereto and Wilmington Trust Company, as
      intercreditor agent.

            

    

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      A - page 15

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
P

    

    TO
THE

    

    ARRANGEMENT
AGREEMENT

    

    FORM OF
NOTE B

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    
      	
              FOR
      FFB USE ONLY

            	 
      	 
      	
              Note
      

              Date

            	 
      	
              September 16, 2009

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Note
      Identifier:

            	 
      	 
      	
              Place
      

              of
      Issue

            	 
      	
              Washington, DC

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Purchase
      Date:

            	 
      	 
      	
              Last
      Day 

              for
      an 

              Advance
      (¶3)

            	 
      	
              June 30, 2012

            
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	
              Maximum
      

              Principal
      

              Amount
      (¶4)

            	 
      	
              $1,560,000,000

            
	
              Maturity
      Date (¶5)

            	 
      	
              June 15, 2022

            	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Payment

              Dates

              (¶7)

            	 
      	
              March 15, June
      15

              September 15,
      & 

              December 15

              of
      each year

            	 
      	
              First
      

              Principal
      

              Payment
      

              Date
      (¶8)

            	 
      	
              September 15,
  2012

            

    

     

    Security

    Instruments

    
      	
              (¶19)

            	
              as listed in Schedule 1
    hereto.

            	 

    

    

    FUTURE
ADVANCE PROMISSORY NOTE

    

    NOTE
B

    

    1.    
       Promise to
Pay.

    

    FOR VALUE RECEIVED, FORD MOTOR
COMPANY, a corporation organized under the laws of Delaware (the "Borrower", which term
includes any successors or assigns), promises to pay the FEDERAL FINANCING BANK ("FFB"), a body
corporate and instrumentality of the United States of America (FFB, for so long
as it shall be the holder of this Note, and any successor or assignee of FFB,
for so long as such successor or assignee shall be the holder of this Note,
being the "Holder"), at the
times, in the manner, and with interest at the rates to be established as
hereinafter provided, such amounts as may be advanced from time to time by FFB
to or for the account of the Borrower under this Note (each such amount being an
"Advance" and
more than one such amounts being "Advances").

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      B - page 1

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    2.            Reference to Certain
Agreements.

    

    (a) Program Financing
Agreement.  This Note is one of the "Notes" referred to in, and
entitled to the benefits of, the Program Financing Agreement dated as of
September 16, 2009, made by and between FFB and the Secretary of Energy (the
"Secretary")
(such agreement, as it may be amended, supplemented, and restated from time to
time in accordance with its terms, being the "Program Financing
Agreement").

    

    (b) Note Purchase
Agreement.  This Note is one of the "Notes" referred to in, and
entitled to the benefits of, the Note Purchase Agreement dated as of even date
herewith, made by and among FFB, the Borrower, and the Secretary (such
agreement, as it may be amended, supplemented, and restated from time to time in
accordance with its terms, being the "Note Purchase
Agreement").

    

    
      	
              3.

            	
              Advances; Advance
      Requests; Last Day for
Advances.

            

    

    

    (a) Subject to the terms and conditions
of the Note Purchase Agreement, FFB shall make Advances under this Note in the
amounts, at the times, and to the accounts requested by the Borrower from time
to time, in each case upon delivery to FFB of a written request by the Borrower
for an Advance under this Note, in the form of request attached to the Note
Purchase Agreement as Exhibit A thereto (each such request being an "Advance Request"),
completed as prescribed in the Note Purchase Agreement.

    

    (b) To be effective, an Advance Request
must first be delivered to the United States Department of Energy (the “Department of
Energy”) for approval and be approved by or on behalf of the Secretary in
writing, and such Advance Request, together with written notification of the
Secretary's approval thereof, must be received by FFB on or before the third
Business Day before the particular calendar date specified in such Advance
Request that the Borrower requests to be the date on which the respective
Advance is to be made.

    

    (c) The Borrower hereby agrees that
FFB, for its purposes, may consider any Advance Request approved by or on behalf
of the Secretary and delivered to FFB in accordance with the terms of the Note
Purchase Agreement to be an accurate representation of the Borrower's request
for an Advance under this Note and the Secretary's approval of that Advance
Request.

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      B - page 2

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    
      	
              4.

            	
              Principal Amount of
      Advances; Maximum Principal
Amount.

            

    

    

    The principal amount of each Advance
shall be the amount specified in the respective Advance Request; provided, however, that the
aggregate principal amount of all Advances made under this Note may not exceed
the particular amount specified on page 1 of this Note as the "Maximum
Principal Amount."

    

    5.        
   Maturity
Date.

    

    This Note, and each Advance made
hereunder, shall mature on the particular date specified on page 1 of this Note
as the "Maturity Date" (such date being the "Maturity
Date").

    

    
      	
              6.

            	
              Computation of
      Interest on Each Advance.

            

    

    

    (a) Subject to paragraphs 11 and 14 of
this Note, interest on the outstanding principal of each Advance shall accrue
from the date on which the respective Advance is made to the date on which such
principal is due.

    

    (b) Interest on each Advance shall be
computed on the basis of (1) actual days elapsed from (but not including) the
date on which the respective Advance is made (for the first payment of interest
due under this Note for the respective Advance) or the date on which the payment
of interest was last due (for all other payments of interest due under this Note
for the respective Advance), to (and including) the date on which payment is
next due, and (2) a year of 365 days.

    

    (c) The interest rate applicable to
each Advance shall be established by FFB at the time that the respective Advance
is made on the basis of the determination made by the Secretary of the Treasury
pursuant to section 136 of the Energy Independence and Security Act of 2007
(Pub. L. No. 110-140, 121 Stat. 1492, 1514), as amended (the "Program Authority");
provided, however, that the
shortest maturity used as the basis for any basic interest rate determination
shall be the remaining maturity of the most recently auctioned United States
Treasury bills having the shortest maturity of all United States Treasury bills
then being regularly auctioned.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 3

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    
      	
              7.

            	
              Payment of Interest;
      Payment Dates.

            

    

    

    Interest accrued on the outstanding
principal balance of each Advance shall be due and payable on each of the
particular dates specified on page 1 of this Note as "Payment Dates" (each such
date being a "Payment
Date"), beginning on the first Payment Date to occur after the date on
which such Advance is made, up through and including the Maturity
Date.

    

    8.        
   Payment of
Principal.

    

    (a) The principal amount of each
Advance shall be payable in installments, which payments shall be due beginning
on the particular date specified as the "First Principal Payment Date" on page 1
of this Note (such date being the "First Principal Payment
Date"), and shall be due on each Payment Date to occur thereafter until
the principal of the respective Advance is repaid in full on or before the
Maturity Date; provided, however, that with
respect to each Advance that is made after the First Principal Payment Date,
principal installments shall be due beginning on the second Payment Date to
occur after the date on which the respective Advance is made.

    

    (b) With respect to each Advance, the
amount of principal due on the First Principal Payment Date, on each Payment
Date to occur thereafter, and on the Maturity Date shall be, in each case,
substantially equal to the amount of every other quarterly installment of
principal and shall be sufficient, when added to all other such quarterly
installments of equal principal, to repay the principal amount of the respective
Advance in full on the Maturity Date.

    

    9.       
    Business
Days.

    

    (a) Whenever any Payment Date or the
Maturity Date shall fall on a day on which either FFB or the Federal Reserve
Bank of New York is not open for business, the payment which would otherwise be
due on such Payment Date or the Maturity Date shall be due on the first day
thereafter on which FFB and the Federal Reserve Bank of New York are both open
for business (any such day being a "Business
Day").

    

    (b) In the case of a Payment Date
falling on a day other than a Business Day, the extension of time for making the
payment that would otherwise be due on such Payment Date shall (1) be taken into
account in establishing the interest rate for each Advance, and (2) be included
in computing interest due in connection with such payment and excluded in
computing interest due in connection with the next payment.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 4

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    (c) In the case of the Maturity Date
falling on a day other than a Business Day, the extension of time for making the
payment that would otherwise be due on the Maturity Date shall (1) be taken into
account in establishing the interest rate for each Advance, and (2) be included
in computing interest due in connection with such payment.

    

    10.          Manner of Making
Payments.

    

    (a) For so long as FFB is the Holder of
this Note, each payment under this Note shall be paid in immediately available
funds by electronic funds transfer to the account of the United States Treasury
(for credit to the subaccount of FFB) maintained at the Federal Reserve Bank of
New York specified by FFB in a written notice to the Borrower, or to such other
account as may be specified from time to time by FFB in a written notice to the
Borrower.

    

    (b) In the event that FFB is not the Holder of this Note,
then each payment under this Note shall be made in immediately available funds
by electronic funds transfer to such account as shall be specified by the Holder
in a written notice to the Borrower.

    

    11.        
 Late
Payments.

    

    (a) In the event that any payment of
any amount owing under this Note is not made when and as due (any such amount
being then an "Overdue
Amount"), then the amount payable shall be such Overdue Amount plus
interest thereon (such interest being the "Late Charge")
computed in accordance with this subparagraph (a):

    

    (1) The Late Charge shall accrue from
the scheduled date of payment for the Overdue Amount (taking into account
paragraph 9 of this Note) to the date on which payment is made.

    

    (2) The Late Charge shall be computed
on the basis of (A) actual days elapsed from (but not including) the scheduled
date of payment for such Overdue Amount (taking into account paragraph 9 of this
Note) to (and including) the date on which payment is made, and (B) a year of
365 days.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 5

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    (3) The Late Charge shall accrue at a
rate (the "Late Charge
Rate") equal to one and one-half times the rate to be determined by the
Secretary of the Treasury taking into consideration the prevailing market yield
on the remaining maturity of the most recently auctioned 13-week United States
Treasury bills.

    

    (4) The initial Late Charge Rate shall
be in effect until the earlier to occur of either (A) the date on which payment
of the Overdue Amount and the amount of the accrued Late Charge is made, or (B)
the first Payment Date to occur after the scheduled date of payment for such
Overdue Amount.  In the event that the Overdue Amount and the amount
of the accrued Late Charge are not paid on or before the such Payment Date, then
the amount payable shall be the sum of the Overdue Amount and the amount of the
accrued Late Charge, plus a Late Charge on such sum accruing at a new Late
Charge Rate to be then determined in accordance with the principles of clause
(3) of this subparagraph (a).  For so long as any Overdue Amount
remains unpaid, the Late Charge Rate shall be re-determined in accordance with
the principles of clause (3) of this subparagraph (a) on each Payment Date to
occur thereafter, and shall be applied to the Overdue Amount and all amounts of
the accrued Late Charge to the date on which payment of the Overdue Amount and
all amounts of the accrued Late Charge is made.

    

    (b) Nothing in subparagraph (a) of this
paragraph 11 shall be construed as permitting or implying that the Borrower may,
without the written consent of the Holder, modify, extend, alter or affect in
any manner whatsoever (except as explicitly provided herein) the right of the
Holder to receive any and all payments on account of this Note on the dates
specified in this Note.

    

    12.          Final Due
Date.

    

    Notwithstanding anything in this Note
to the contrary, all amounts outstanding under this Note remaining unpaid as of
the Maturity Date shall be due and payable on the Maturity Date.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 6

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    13.          Application of
Payments.

    

    Each payment made on this Note shall be
applied first to the payment of Late Charges (if any) payable under paragraphs
11 and 15 of this Note, then to the payment of premiums (if any) payable under
paragraph 14 of this Note, then to the payment of accrued interest, then on
account of outstanding principal of this Note.

    

    
      	
              14.

            	
              Prepayments.

            

    

    

    (a) The Borrower may elect to prepay
all or any portion of the outstanding principal amount of any Advance made under
this Note, or to prepay this Note in its entirety, in the manner, at the price,
and subject to the limitations specified in this paragraph 14 (each such
election being a "Prepayment
Election").

    

    (b) The Borrower shall deliver to FFB
(and if FFB is not the Holder, then also to the Holder) written notification of
each Prepayment Election (each such notification being a "Prepayment Election
Notice"), specifying:

    

    (1) the Advance Identifier that FFB
assigned to the respective Advance (as provided in the Note Purchase
Agreement);

    

    (2) the particular date on which the
Borrower intends to prepay the respective Advance (such date being the "Intended Prepayment
Date" for the respective Advance), which date must be a Business Day;
and

    

    (3) the amount of principal of the
respective Advance that the Borrower intends to prepay, which amount may be
either:

    

    (A) the total outstanding principal
amount of such Advance; or

    

    (B) an amount less than the total
outstanding principal amount of such Advance (any such amount being a "Portion").

    

    (c) To be effective, a Prepayment
Election Notice must be received by FFB (and if FFB is not the Holder, then also
by the Holder) on or before the fifth Business Day before the date specified
therein as the Intended Prepayment Date for the respective Advance or
Portion.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 7

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    (d) The Borrower shall pay to the
Holder a price for the prepayment of any Advance or Portion (such price being
the "Prepayment
Price" for such Advance or Portion) determined as follows:

    

    (1) in the event that the Borrower
elects to prepay the entire outstanding principal amount of any Advance, then
the Borrower shall pay to the Holder a Prepayment Price for such Advance equal
to the sum of:

    

    (A) the price for such Advance that
would, if such Advance (including all unpaid interest accrued thereon through
the Intended Prepayment Date) were purchased by a third party and held to the
Maturity Date, produce a yield to the third-party purchaser for the period from
the date of purchase to the Maturity Date substantially equal to the interest
rate that would be set on a loan from the Secretary of the Treasury to FFB to
purchase an obligation having a payment schedule identical to the payment
schedule of such Advance for the period from the Intended Prepayment Date to the
Maturity Date; and

    

    (B) all unpaid Late Charges (if any)
accrued on such Advance through the Intended Prepayment Date;

    

    (2) in the event that the Borrower
elects to prepay a Portion of any Advance, then the Borrower shall pay to the
Holder a Prepayment Price for such Portion that would equal such Portion's pro
rata share of the Prepayment Price that would be required for a prepayment of
the entire principal amount of such Advance (determined in accordance with the
principles of clause (1) of this subparagraph (d)); and

    

    (3) in the event that the Borrower
elects to prepay this Note in its entirety, then the Borrower shall pay to the
Holder an amount equal to the sum of the Prepayment Prices for all outstanding
Advances (determined in accordance with the principles of clause (1) of this
subparagraph (d)).

    

    The price
described in subclause (A) of clause (1) of this subparagraph (d) shall be
calculated by the Secretary of the Treasury as of the close of business on the
second Business Day before the Intended Prepayment Date, using standard
calculation methods of the United States Department of the
Treasury.  FFB shall deliver by facsimile transmission (fax) to the
Borrower a written notice by 12:00 noon (Washington, DC, time) on the Business
Day immediately preceding the Intended Prepayment Date specifying the Prepayment
Price for the Advance or Portion and setting out separately principal, accrued
interest, premium (if any), and Late Charges (if any); provided, however, that
failure on the part of FFB to deliver any notice of the Prepayment Price by
12:00 noon (Washington, DC, time) or failure on the part of the Borrower to
receive any notice of the Prepayment Price shall not relieve the Borrower of the
payment obligation described in subparagraph (e) of this paragraph 14, but
rather shall give rise to a responsibility on the part of the Borrower to make
inquiry to FFB for the Purchase Price.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 8

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    (e) Payment of the Prepayment Price for
any Advance or any Portion shall be due to the Holder before 3:00 p.m.
(Washington, DC, time) on the Intended Prepayment Date for such Advance or
Portion.

    

    (f) Each prepayment of a Portion shall,
as to the principal amount of such Portion, be subject to a minimum amount equal
to $100,000.00 of principal; except that the minimum principal amount limitation
shall not apply to a prepayment of a Portion if:

    

    (1) the prepayment is made to satisfy
the Borrower's obligation to make a mandatory prepayment under the "Security
Instruments" (as that term is defined in paragraph 19 of this Note);
and

    

    (2) the Borrower has certified to that
fact in the respective Prepayment Election Notice.

    

    (g) In the event that the Borrower
makes a Prepayment Election with respect to any Portion of an Advance, then the
Prepayment Price paid for such Portion will be applied as provided in paragraph
13 of this Note, and, with respect to application to outstanding principal, such
Prepayment Price shall be applied to principal installments in the inverse order
of maturity.

    

    (h) In the event that the Borrower
makes a Prepayment Election with respect to any Portion of an Advance, then the
outstanding principal amount of such Advance, from and after such partial
prepayment, shall be due and payable in accordance with this subparagraph
(h).

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 9

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    (1) The amount of the quarterly
principal installments that will be due after such partial prepayment shall be
equal to the quarterly installments of equal principal that were due in
accordance with the level principal repayment schedule that applied to such
Advance immediately before such partial prepayment.

    

    (2) The equal payments of principal
shall be due beginning on the first Payment Date to occur after such partial
prepayment, and shall be due on each Payment Date to occur thereafter up through
and including the date on which the entire principal amount of such Advance and
all unpaid interest (and Late Charges, if any) accrued thereon, are
paid.

    

    
      	
              15.

            	
              Rescission of
      Prepayment Elections; Late Charges for Late Payments of Prepayment
      Prices.

            

    

    

    (a) The Borrower may rescind any
Prepayment Election made in accordance with paragraph 14 of this Note, but only
in accordance with this paragraph 15.

    

    (b) The Borrower shall deliver to FFB
written notification of each rescission of a Prepayment Election (each such
notification being an "Election Rescission
Notice") specifying the particular Advance for which the Borrower wishes
to rescind such Prepayment Election, which specification must make reference to
the particular "Advance Identifier" (as that term is defined in the Note
Purchase Agreement) that FFB assigned to such Advance (as provided in the Note
Purchase Agreement).  The Election Rescission Notice may be delivered
by facsimile transmission to FFB at (202) 622-0707 or at such other facsimile
number or numbers as FFB may from time to time communicate to the
Borrower.

    

    (c) To be effective, an Election
Rescission Notice must be received by FFB not later than 3:30 p.m. (Washington,
DC, time) on the second Business Day before the Intended Prepayment
Date.

    

    (d) In the event that the Borrower (1)
makes a Prepayment Election in accordance with paragraph 14 of this Note, (2)
does not rescind such Prepayment Election in accordance with this paragraph 15,
and (3) does not, before 3:00 p.m. (Washington, DC, time) on the Intended
Prepayment Date, pay to FFB the Prepayment Price described in paragraph 14(d) of
this Note, then a Late Charge shall accrue on any such unpaid amount from the
Intended Prepayment Date to the date on which payment is made, computed in
accordance with the principles of paragraph 11 of this Note.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 10

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    16.          Amendments to
Note.

    

    To the extent not inconsistent with
applicable law, this Note shall be subject to modification by such amendments,
extensions, and renewals as may be agreed upon from time to time by the Holder
and the Borrower, with the approval of the Secretary.

    

    17.          Certain
Waivers.

    

    The Borrower hereby waives any
requirement for presentment, protest, or other demand or notice with respect to
this Note.

    

    18.          Effective Until
Paid.

    

    Except as provided in section 6.2 of
the Note Purchase Agreement, this Note shall continue in full force and effect
until all amounts due and payable hereunder have been paid in full.

    

    
      	
              19.

            	
              Security Instruments;
      Secretary as "Holder" of Note for Purposes of the Security
      Instruments.

            

    

    

    This Note is one of the notes permitted
to be executed and delivered by, and is entitled to the benefits and security
of, the particular security instruments specified on page 1 of this Note (such
security instruments, as they may have heretofore been, and as they may
hereafter be, amended, supplemented, restated, or consolidated from time to time
in accordance with its or their terms, being, collectively, the "Security
Instruments"), whereby the Borrower pledged and granted a security
interest in certain property of the Borrower, described therein, to secure the
payment and performance of certain obligations owed to the Secretary and any
other Holder of this Note or participation share hereof, as set forth in the
Security Instruments.  For purposes of the Security Instruments, in
consideration of the undertakings by the Secretary set forth in the Program
Financing Agreement and the Note Purchase Agreement, and the affirmation by the
Secretary dated as of even date herewith, delivered by the Secretary to FFB as
provided in the Note Purchase Agreement (the "Secretary's
Affirmation"), the Secretary shall be considered to be, and shall have
the rights, powers, privileges, and remedies of, the Holder of this
Note.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 11

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    
      	
              20.

            	
              Default and
      Enforcement.

            

    

    

    In case of a default by the Borrower
under this Note or the occurrence of an event of default under the Security
Instruments, then, in consideration of the undertakings by the Secretary set
forth in the Program Financing Agreement and the Note Purchase Agreement, and
the Secretary's Affirmation, the Secretary, in his own name, shall have all
rights, powers, privileges, and remedies of the Holder of this Note, in
accordance with the terms of this Note and the Security Instruments, including,
without limitation, the right to enforce or collect all or any part of the
obligation of the Borrower under this Note or arising as a result of the
Secretary's Affirmation, to file proofs of claim or any other document in any
bankruptcy, insolvency, or other judicial proceeding, and to vote such proofs of
claim.

    

    21.          Acceleration.

    

    The entire unpaid principal amount of
this Note, and all interest thereon, may be declared, and upon such declaration
shall become, due and payable to the Secretary, under the circumstances
described, and in the manner and with the effect provided, in the Security
Instruments.

    

    22.          Governing
Law.

    

    This Note shall be governed by, and
construed and interpreted in accordance with, Federal law and not the law of any
state or locality.  To the extent that a court looks to the laws of
any state to determine or define the Federal law, it is the intention of the
parties hereto that such court shall look only to the laws of the State of New
York without regard to the rules of conflicts of laws.

    
      

      
        	
                (note
      form 2: qtr payments)

              	
                NOTE
      B - page 12

              

      

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    IN WITNESS WHEREOF, the
Borrower has caused this Note to be signed in its corporate name and its
corporate seal to be hereunder affixed and attested by its officers thereunto
duly authorized, all as of the day and year first above written.

    

    
      	 
      	 	 
      	
              FORD
      MOTOR COMPANY

            
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	
              BY:

            	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	
              Signature:

            	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	
              Print
      Name:

            
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	
              Title:

            	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	
              ATTEST:

            	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	
              Signature:

            	 
	
              (SEAL)

            	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	
              Print
      Name:

            
	 
      	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	 
      	 	 
      	
              Title:

            	 

    

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      B - page 13

            

    

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

     

    SCHEDULE
1

    

    Security
Instruments

    

    Unless
otherwise defined herein, terms defined in the Note and used herein shall have
the meanings given to them in the Note.

    

    
      	
              (1)

            	
              Loan
      Arrangement and Reimbursement Agreement between the Borrower (as defined
      herein) and the Department of Energy, dated September 16, 2009 (the “Arrangement
      Agreement”);

            

    

     

    
      	
              (2)

            	
              Guarantee
      made by certain subsidiaries of the Borrower in favor of the Department of
      Energy, FFB and the holders of the notes described therein, dated as of
      September 16, 2009;

            

    

    

    
      	
              (3)

            	
              Security
      Agreement made by the Borrower and any of its subsidiaries that becomes a
      grantor thereunder in favor of Wilmington Trust Company, as collateral
      trustee (the “ATVM Collateral
      Trustee”), dated as of September 16,
  2009;

            

    

    

    
      	
              (4)

            	
              Collateral
      Trust Agreement dated as of September 16, 2009 among the Borrower, any of
      its subsidiaries that becomes a party thereto, and the ATVM Collateral
      Trustee (the “ATVM Collateral Trust
      Agreement”); and

            

    

    

    
      	
              (5)

            	
              each
      other security document (other than any Existing Collateral Security
      Document (as defined in the Arrangement Agreement)) delivered to DOE
      and/or the ATVM Collateral Trustee granting a Lien (as defined in the ATVM
      Collateral Trust Agreement) on any property of any person to secure the
      Secured Obligations (as defined in the ATVM Collateral Trust Agreement),
      including the obligations of the Borrower under Note
  B.

            

    

     

    

    
      	
              (note
      form 2: qtr payments)

            	
              NOTE
      B - page 14ex10_2.htm

    
      
Exhibit 10.2

     

    
      	
              DOE
      (ATV)

            	
              FORD
      MOTOR COMPANY

            

    

    

    

    

    
      	 
      	
              NOTE PURCHASE AGREEMENT
      made as of September 16, 2009, by and among the FEDERAL FINANCING BANK
      ("FFB"),
      a body corporate and instrumentality of the United States of America,
      FORD MOTOR COMPANY
      (the "Borrower"), a
      corporation organized and existing under the laws of the State of
      Delaware, and the SECRETARY OF ENERGY (the
      "Secretary").

            	 
      

    

    

    

    

    WHEREAS, the Secretary is
authorized, pursuant to the Program Authority (as hereinafter defined), to carry
out a program to provide for loans that meet the requirements of the Program
Authority; and

    

    WHEREAS, FFB is authorized,
pursuant to the Program Authority, to make loans under the Secretary's program;
and

    

    WHEREAS, FFB has entered into
the Program Financing Agreement (as hereinafter defined) with the Secretary
setting forth the commitment of FFB to enter into agreements to purchase notes
issued by entities designated by the Secretary when the Secretary affirms that
(i) the Secretary is obligated to reimburse FFB under circumstances and in
amounts as provided therein in connection with loans evidenced by those notes,
and (ii) such reimbursement obligations are made with the full faith and credit
of the United States, and the commitment of the Secretary to make such
affirmations; and

    

    WHEREAS, pursuant to the
Program Financing Agreement, the Secretary has delivered to FFB and the Borrower
a Designation Notice (as hereinafter defined) designating the Borrower to be a
"Borrower" for purposes of the Program Financing Agreement; and

    

    WHEREAS, FFB is entering into
this Note Purchase Agreement, in fulfillment of its commitment under the Program
Financing Agreement, setting out, among other things, FFB's agreement to
purchase the Notes (as hereinafter defined) to be issued by the Borrower, when
the terms and conditions specified herein have been satisfied, as hereinafter
provided.

    

    

    NOTE
PURCHASE AGREEMENT - page 1

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        	
                DOE
      (ATV)

              	
                FORD
      MOTOR COMPANY

              

      

    

     

     

    NOW, THEREFORE, for and in
consideration of the mutual agreements herein contained and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, FFB, the Secretary, and the Borrower agree as
follows:

    

    

    ARTICLE
1

    

    DEFINITIONS
AND RULES OF INTERPRETATION

    

    

    Section
1.1  Definitions.

    

    As used
in this Agreement, the following terms shall have the respective meanings
specified in this section 1.1, unless the context clearly requires
otherwise.

    

    "Advance" shall mean
an advance of funds made by FFB under any Note in accordance with the provisions
of article 7 of this Agreement.

    

    "Advance Identifier"
shall mean, for each Advance, the particular sequence of letters and numbers
constituting the Note Identifier plus the particular sequence of additional
numbers assigned by FFB to the respective Advance in the interest rate
confirmation notice relating to such Advance delivered by FFB in accordance with
section 7.7 of this Agreement.

    

    "Advance Request"
shall mean a letter from the Borrower requesting an Advance under any Note, in
the form of letter attached as Exhibit A to this
Agreement.

    

    "Advance Request Approval
Notice" shall mean the written notice from the Department located at the
end of an Advance Request advising FFB that such Advance Request has been
approved by or on behalf of the Secretary.

    

    "Borrower Instruments"
shall have the meaning specified in section 3.2.1 of this
Agreement.

     

     

    NOTE PURCHASE AGREEMENT - page
2

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

       

       

    

    "Business Day" shall
mean any day on which FFB and the Federal Reserve Bank of New York are both open
for business.

    

    "Certificate Specifying
Authorized Borrower Officials" shall mean a certificate of the Borrower
specifying the names and titles of those officials of the Borrower who are
authorized to execute and deliver from time to time Advance Requests on behalf
of the Borrower, and containing the original signature of each of those
officials, substantially in the form of the Certificate Specifying Authorized
Borrower Officials attached as Exhibit B to this
Agreement.

    

    "Certificate Specifying
Authorized Department Officials" shall mean a certificate specifying the
names and titles of those officials of the Department who are authorized to
execute and deliver Advance Request Approval Notices from time to time on behalf
of the Secretary and setting out the original signature of each of those
authorized officials, and specifying the name and title of those officials of
the Department who are authorized to confirm telephonically the authenticity of
the Advance Request Approval Notices from time to time on behalf of the
Secretary and setting out the telephone number of each of those authorized
officials, in the form of the Certificate Specifying Authorized Department
Officials attached as Annex 1 to the Program Financing Agreement.

    

    "Department" shall
mean the Department of Energy.

    

    "Designation Notice"
shall mean, generally, a notice from the Secretary to FFB and the particular
entity identified therein as the respective "Borrower," designating that entity
to be a "Borrower" for purposes of the Program Financing Agreement, in the form
of notice that is attached as Annex 2 to the Program Financing Agreement; and
"the
Designation
Notice" shall mean the particular Designation Notice delivered by the
Secretary to FFB and the Borrower designating the Borrower to be a "Borrower"
for purposes of the Program Financing Agreement.

    

    "Governmental
Approval" shall mean any approval, consent, authorization, license,
permit, order, certificate, qualification, waiver, exemption, or variance, or
any other action of a similar nature, of or by a Governmental Authority having
jurisdiction over the Borrower or any of its properties. 

       

       

      NOTE PURCHASE AGREEMENT - page
3

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    "Governmental
Authority" shall mean any federal, state, county, municipal, or regional
authority, or any other entity of a similar nature, exercising any executive,
legislative, judicial, regulatory, or administrative function of
government.

    

    "Governmental
Judgment" shall mean any judgment, order, decision, or decree, or any
action of a similar nature, of or by a Governmental Authority having
jurisdiction over the Borrower or any of its properties.

    

    "Governmental
Registration" shall mean any registration, filing, declaration, or
notice, or any other action of a similar nature, with or to a Governmental
Authority having jurisdiction over the Borrower or any of its
properties.

    

    "Governmental Rule"
shall mean any statute, law, rule, regulation, code, or ordinance of a
Governmental Authority having jurisdiction over the Borrower or any of its
properties.

    

    "Holder" shall mean,
with respect to any Note, FFB, for so long as it shall be the holder of such
Note, and any successor or assignee of FFB, for so long as such successor or
assignee shall be the holder of such Note.

    

    "Loan Commitment
Amount" shall mean $5,937,000,000.

    

    "Material Adverse Effect on
the Borrower" shall mean any material adverse effect on the financial
condition, operations, business or prospects of the Borrower or any affiliated
guarantor of the Borrower or the ability of the Borrower to perform its
obligations under this Agreement or any of the other Borrower
Instruments.

    

    "Note" shall mean any
future advance promissory note issued by the Borrower payable to FFB, in the
form of note that is attached as Exhibit C to this
Agreement, as any such Note may be amended, supplemented, and restated from time
to time in accordance with its terms. 

       

       

      NOTE PURCHASE AGREEMENT - page
4

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    "Note Identifier"
shall mean, with respect to each Note, the particular sequence of letters and
numbers assigned by FFB to the respective Note in the Principal Instruments
acceptance notice relating to such Note delivered by FFB in accordance with
section 5.1 of this Agreement.

    

    "Opinion of Borrower's
Counsel re: Borrower Instruments" shall mean an opinion of counsel from
counsel to the Borrower, substantially in the form of opinion that is attached
as Exhibit D to
this Agreement.

    

    "Opinion of Secretary's
Counsel re: Secretary's Affirmation" shall mean an opinion of counsel
from counsel to the Secretary, substantially in the form of opinion that is
attached as Exhibit
E to this Agreement.

    

    "Other Debt
Obligation" shall mean any note or any other evidence of an obligation
for borrowed money of a similar nature, made or issued by the Borrower (other
than the Notes purchased by FFB under this Agreement), or any mortgage,
indenture, deed of trust or loan agreement with respect thereto to which the
Borrower is a party or by which the Borrower or any of its properties is bound
(other than this Agreement).

    

    "Person" shall mean
any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, trust company, unincorporated organization or
Governmental Authority.

    

    "Principal
Instruments" shall have the meaning specified in section 4.2 of this
Agreement.

    

    "Program Authority"
shall mean section 136 of the Energy Independence and Security Act of 2007 (Pub.
L. No. 110-140, 121 Stat. 1492, 1514), as amended from time to time, including
as amended by section 129 of Division A of the Consolidated Security, Disaster
Assistance, and Continuing Appropriations Act, 2009 (Pub. L. No. 110-329, 122
Stat. 3574, 3578). 

       

       

      NOTE PURCHASE AGREEMENT - page
5

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    "Program Financing Commitment
Amount" shall have the meaning specified in section 1.1 of the Program
Financing Agreement.

    

    "Program Financing
Agreement" shall mean the Program Financing Agreement dated as of
September 16, 2009, between FFB and the Secretary, as such agreement may be
amended, supplemented, and restated from time to time in accordance with its
terms.

    

    "Requested Advance
Amount" shall have the meaning specified in section 7.3.1(a)(2) of this
Agreement.

    

    "Requested Advance
Date" shall have the meaning specified in section 7.3.1(a)(3) of this
Agreement.

    

    "Secretary's
Affirmation" shall mean the affirmation of the Note issued by the
Secretary, in the form of affirmation that is attached as Exhibit F to this
Agreement.

    

    "Secretary's
Certificate" shall mean the certificate relating to the Secretary's
Affirmation and other matters, in the form of certificate that is attached as
Exhibit G to
this Agreement.

    

    "Secretary's
Instruments" shall have the meaning specified in section 3.3.1 this
Agreement.

    

    "this Agreement" shall
mean this Note Purchase Agreement among FFB, the Secretary, and the
Borrower.

    

    "Uncontrollable Cause"
shall mean an unforeseeable cause beyond the control and without the fault of
FFB, being:  act of God, fire, flood, severe weather, epidemic,
quarantine restriction, explosion, sabotage, act of war, act of terrorism, riot,
civil commotion, lapse of the statutory authority of the United States
Department of the Treasury to raise cash through the issuance of Treasury debt
instruments, disruption or failure of the Treasury Financial Communications
System, closure of the Federal Government, or an unforeseen or unscheduled
closure or evacuation of the FFB offices. 

       

       

      NOTE PURCHASE AGREEMENT - page
6

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section 1.2  Rules of
Interpretation.

    

    Unless
the context shall otherwise indicate, the terms defined in section 1.1 of this
Agreement shall include the plural as well as the singular and the singular as
well as the plural.  The words "herein," "hereof," and "hereto," and
words of similar import, refer to this Agreement as a whole.

    

    

    ARTICLE
2

    

    FFB
COMMITMENT TO PURCHASE THE NOTE

    

    

    Subject
to the terms and conditions of this Agreement, FFB agrees to purchase the Notes
that are offered by the Borrower to FFB for purchase under this
Agreement.

    

    

    ARTICLE
3

    

    COMMITMENT
CONDITIONS

    

    

    FFB shall
be under no obligation to purchase the Notes under this Agreement unless and
until each of the conditions specified in this article 3 has been
satisfied.

    

    Section
3.1  Commitment Amount
Limits.

    

    3.1.1  Loan Commitment
Amount.  The aggregate maximum principal amount of the Notes
that are offered for purchase shall not exceed the Loan Commitment
Amount.

    

    3.1.2  Program Financing Commitment
Amount.  At the time that each Note is offered to FFB for
purchase under this Agreement, the aggregate maximum principal amount of the
Notes, when added to the aggregate maximum principal amount of all other notes
that have been issued by entities that have been designated by the Secretary in
Designation Notices to be "Borrowers" for purposes of the Program Financing
Agreement and in connection with which the Secretary has undertaken certain
reimbursement obligations pursuant to the Program Authority, shall not exceed
the Program Financing Commitment Amount. 

       

       

      NOTE PURCHASE AGREEMENT - page
7

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section
3.2  Borrower
Instruments.

    

    3.2.1  Borrower
Instruments.  FFB shall have received from the Borrower the
following instruments (such instruments being, collectively, the "Borrower
Instruments"):

    

    (a) an
original counterpart of this Agreement, duly executed by the Borrower;
and

    

    (b) each
original Note described in the Designation Notice, with all of the blanks on
page 1 of each Note filled in with information consistent with the information
set out in the Designation Notice, and duly executed by the
Borrower.

    

    3.2.2  Opinion of Borrower's
Counsel re: Borrower Instruments.  FFB shall have received from
the Borrower an Opinion of Borrower's Counsel re: Borrower
Instruments.

    

    3.2.3  Certificate Specifying
Authorized Borrower Officials.  FFB shall have received from
the Borrower a completed and signed Certificate Specifying Authorized Borrower
Officials.

    

    Section
3.3  Secretary's
Instruments.

    

    3.3.1  Secretary's
Instruments.  FFB shall have received from the Secretary the
following instruments (such instruments being, collectively, the "Secretary's
Instruments"):

    

    (a) an
original counterpart of this Agreement, duly executed by or on behalf of the
Secretary;

    

    (b) the
original Secretary's Affirmation relating to the Notes, duly executed by or on
behalf of the Secretary; and 

       

       

      NOTE PURCHASE AGREEMENT - page
8

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (c) an
original Secretary's Certificate relating to the Secretary's Affirmation and
other matters, duly executed by or on behalf of the Secretary.

    

    3.3.2  Opinion of Secretary's
Counsel re: Secretary's Affirmation.  FFB shall have received
an Opinion of Secretary's Counsel re: Secretary's Affirmation.

    

    Section 3.4  Conditions
Specified in Other Agreements.

    

    Each of
the conditions specified in the Program Financing Agreement as being conditions
to purchasing the Note shall have been satisfied, or waived by both FFB and the
Secretary.

    

    

    ARTICLE
4

    

    OFFER
OF THE NOTES FOR PURCHASE

    

    

    The Notes
that are to be offered to FFB for purchase under this Agreement shall be offered
in accordance with the procedures described in this article 4.

    

    Section
4.1  Delivery of Borrower
Instruments to the Secretary.

    

    The
Borrower shall deliver to the Secretary, for redelivery to FFB, the
following:

    

    (a) all
of the Borrower Instruments, each duly executed by the Borrower;

    

    (b) an
Opinion of Borrower's Counsel re: Borrower Instruments; and

    

    (c) a
completed and signed Certificate Specifying Authorized Borrower
Officials.

    

    Section
4.2  Delivery of Principal
Instruments by the Secretary to FFB.

    

    The
Secretary shall deliver to FFB all of the following instruments (collectively
being the "Principal
Instruments"): 

       

       

      NOTE PURCHASE AGREEMENT - page
9

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (a) all
of the instruments described in section 4.1;

    

    (b) all
of the Secretary's Instruments, each duly executed by the Secretary;
and

    

    (c) an
Opinion of Secretary's Counsel re: Secretary's Affirmation.

    

    

    ARTICLE
5

    

    PURCHASE
OF THE NOTES BY FFB

    

    

    Section 5.1  Acceptance
or Rejection of Principal Instruments.

     

    Within 5
Business Days after delivery to FFB of the Principal Instruments relating to the
Notes that are offered for purchase under this Agreement, FFB shall deliver by
facsimile transmission (fax) to the Department one of the
following:

    

    (a) an
acceptance notice, which notice shall:

    

    (1) state
that the Principal Instruments meet the terms and conditions detailed in article
3 of this Agreement, or are otherwise acceptable to FFB; and

    

    (2)
assign a Note Identifier to each Note for use by the Borrower and the Department
in all communications to FFB making reference to the respective Note;
or

    

    (b) a
rejection notice, which notice shall state that one or more of the Principal
Instruments does not meet the terms and conditions of this Agreement and specify
how such instrument or instruments does not meet the terms and conditions of
this Agreement.

    

    Section 5.2  Purchase.

    

    FFB shall
not be deemed to have accepted the Notes offered for purchase under this
Agreement until such time as FFB shall have delivered an acceptance notice
accepting the Principal Instruments relating to the Notes; provided, however, that in the
event that FFB shall make an Advance under any Note, then FFB shall be deemed to
have accepted such Note offered for purchase. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    ARTICLE
6

    

    CUSTODY
OF NOTE; LOSS OF NOTE, ETC.

    

    

    Section
6.1  Custody.

    

    FFB shall
have custody of each Note purchased under this Agreement until all amounts owed
under the respective Note have been paid in full.

    

    Section
6.2  Lost,
Stolen, Destroyed, or Mutilated Note.

    

    In the
event that any Note purchased under this Agreement shall become lost, stolen,
destroyed, or mutilated, the Borrower shall, upon the written request of FFB,
execute and deliver, in replacement thereof, a new Note of like tenor, dated and
bearing interest from the date to which interest has been paid on such lost,
stolen, destroyed, or mutilated Note or, if no interest has been paid thereon,
dated the same date as such lost, stolen, destroyed, or mutilated
Note.  Upon delivery of such replacement Note, the Borrower shall be
released and discharged from any further liability on account of the lost,
stolen, or destroyed Note.  If the Note being replaced has been
mutilated, such mutilated Note shall be surrendered to the Borrower for
cancellation.

    

    

    ARTICLE
7

    

    ADVANCES

    

    

    Section 7.1  Commitment.

    

    Subject
to the terms and conditions of this Agreement, FFB agrees to make Advances under
each Note for the account of the Borrower. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section 7.2  Treasury
Policies Applicable to Advances.

    

    Each of
the Borrower and the Secretary understands and consents to the following
Treasury financial management policy applicable to all Advances under this
Agreement:

    

    each
Advance will be requested by the Borrower, and each Advance Request will be
approved by the Secretary, only to reimburse the Borrower for expenditures that
it has made from its own working capital.

    

    Section
7.3  Conditions to Making
Advances.

    

    FFB shall
be under no obligation to make any Advance under any Note unless and until each
of the conditions specified in this section 7.3 is satisfied.

    

    7.3.1  Advance
Requests.  For each Advance under any Note, the Borrower shall
have delivered to the Secretary, for review and approval before being forwarded
to FFB, an Advance Request, which Advance Request:

    

    (a) shall
specify, among other things:

    

    (1) the
particular "Note Identifier" that FFB assigned to the respective Note (as
provided in section 5.1 of this Agreement;

    

    (2) the
particular amount of funds that the Borrower requests to be advanced (such
amount being the "Requested Advance
Amount" for the respective Advance);

    

    (3) the
particular calendar date that the Borrower requests to be the date on which the
respective Advance is to be made (such date being the "Requested Advance
Date" for such Advance), which date:

    

    (A) must
be a Business Day; and

    

    (B) shall
not be earlier than the third Business Day to occur after the date on which FFB
shall have received the respective Advance Request; and 

       

       

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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (4) the
particular bank account to which the Borrower requests that the respective
Advance be made;

    

    (b) shall
have been duly executed by an official of the Borrower whose name and signature
appear on the Certificate Specifying Authorized Borrower Officials delivered by
the Borrower to FFB pursuant to section 3.2.3 of this Agreement;
and

    

    (c) shall
have been received by FFB not later than the third Business Day before the
Requested Advance Date specified in such Advance Request.

    

    7.3.2  Advance Request Approval
Notice.  For each Advance, the Secretary shall have delivered
to FFB the Borrower's executed Advance Request, together with the Department's
executed Advance Request Approval Notice, which Advance Request Approval
Notice:

    

    (a) shall
have been duly executed on behalf of the Secretary by an official of the
Department whose name and signature appear on the Certificate Specifying
Authorized Department Officials delivered to FFB pursuant to section 3.1.3 or
section 6.1 of the Program Financing Agreement; and

    

     (b)
shall have been received by FFB not later than the third Business Day before the
Requested Advance Date specified in such Advance Request.

    

    7.3.3  Telephonic Confirmation of
Authenticity of Advance Request Approval Notices.  For each
Advance, FFB shall have obtained telephonic confirmation of the authenticity of
the related Advance Request Approval Notice from an official of the Department
(a) whose name, title, and telephone number appear on the Certificate Specifying
Authorized Department Officials that has been delivered by the Secretary to FFB
pursuant to section 3.1.3 or section 6.1 of the Program Financing Agreement; and
(b) who is not the same official of the Department who executed the Advance
Request Approval Notice on behalf of the Secretary. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    7.3.4  Note Maximum Principal
Amount Limit.  At the time of making any Advance under any
Note, the amount of such Advance, when added to the aggregate amount of all
Advances previously made under such Note, shall not exceed the maximum principal
amount of such Note.

    

    7.3.5  Conditions Specified in
Other Agreements.  Each of the conditions specified in the
Program Financing Agreement as being conditions to making Advances under each
Note, shall have been satisfied, or waived by both FFB and the
Secretary.

    

    Section
7.4  Amount
and Timing of Advances.

    

    FFB shall
make each Advance in the Requested Advance Amount specified in the respective
Advance Request and on the Requested Advance Date specified in the respective
Advance Request, subject to satisfaction of the conditions specified in section
7.3 of this Agreement and subject to the following additional
limitations:

    

    (a) in
the event that the Requested Advance Date specified in the respective Advance
Request is not a Business Day, FFB shall make the respective Advance on the
first day thereafter that is a Business Day;

    

    (b) in
the event that FFB receives the respective Advance Request and the related
Advance Request Approval Notice later than the third Business Day before the
Requested Advance Date specified in such Advance Request, FFB shall make the
respective Advance as soon as practicable thereafter, but in any event not later
than the third Business Day after FFB receives such Advance Request, unless the
Borrower delivers to FFB and the Secretary a written cancellation of such
Advance Request or a replacement Advance Request specifying a later Requested
Advance Date;

    

    (c) in
the event that an Uncontrollable Cause prevents FFB from making the respective
Advance on the Requested Advance Date specified in the respective Advance
Request, FFB shall make such Advance as soon as such Uncontrollable Cause ceases
to prevent FFB from making such Advance, unless the Borrower delivers to FFB and
the Secretary a written cancellation of such Advance Request or a replacement
Advance Request specifying a later Requested Advance Date; and 

       

       

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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (d) in
the event that FFB receives, not later than 3:30 p.m. (Washington, DC, time) on
the Business Day immediately before the Requested Advance Date specified in an
Advance Request, a written notice delivered by facsimile transmission of
withdrawal or cancellation of the Advance Request Approval Notice, and
telephonic confirmation of the withdrawal or cancellation, from an official of
the Department whose name, title, and telephone number appear on the Certificate
Specifying Authorized Department Officials that has been delivered by the
Secretary to FFB pursuant to section 3.1.3 or section 6.1 of the Program
Financing Agreement, FFB shall not make the respective Advance.

    

    Section
7.5  Type of
Funds and Means of Advance.

    

    Each
Advance shall be made in immediately available funds by electronic funds
transfer to such bank account(s) as shall have been specified in the respective
Advance Request.

     

    Section 7.6  Interest
Rate Applicable to Advances.

    

    The rate
of interest applicable to each Advance made under any Note shall be established
as provided in paragraph 6 of such Note.

    

    Section
7.7  Interest Rate Confirmation
Notices.

    

    After
making each Advance, FFB shall deliver, by facsimile transmission, to the
Borrower and the Department written confirmation of the making of the respective
Advance, which confirmation shall:

    

    (a) state
the date on which such Advance was made;

    

    (b) state
the interest rate applicable to such Advance; and 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (c)
assign an Advance Identifier to such Advance for use by the Borrower and the
Department in all communications to FFB making reference to such
Advance.

    

    

    ARTICLE
8

    

    REPRESENTATIONS
AND WARRANTIES BY THE BORROWER

    

    

    The
Borrower makes the representations and warranties provided in this article 8 to
FFB.

    

    Section 8.1  Organization.

    

    The
Borrower is a corporation duly organized, validly existing and in good standing
under the laws of Delaware and is qualified to do business in each of Illinois,
Kentucky, Michigan, Missouri, New York, and Ohio.

    

    Section
8.2  Authority.

    

    The
Borrower has all requisite corporate power and authority to carry on its
business as presently conducted, to execute and deliver this Agreement and each
of the other Borrower Instruments, to consummate the transactions contemplated
hereby and thereby, and to perform its obligations hereunder and
thereunder.

    

    Section 8.3  Due
Authorization.

    

    The
execution and delivery by the Borrower of this Agreement and each of the other
Borrower Instruments, the consummation by the Borrower of the transactions
contemplated hereby and thereby, and the performance by the Borrower of its
obligations hereunder and thereunder have been duly authorized by all necessary
corporate action. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section 8.4  Due
Execution.

    

    This
Agreement has been, and each of the other Borrower Instruments will have been at
the respective time of delivery of each thereof, duly executed and delivered by
officials of the Borrower who are duly authorized to execute and deliver such
documents on its behalf.

    

    Section 8.5  Validity
and Enforceability.

    

    This
Agreement constitutes, and each of the other Borrower Instruments will
constitute at the respective time of delivery of each thereof, the legal, valid,
and binding agreement of the Borrower, enforceable against the Borrower in
accordance with their respective terms.

    

    Section
8.6  No
Governmental Actions Required.

    

    No
Governmental Approvals or Governmental Registrations are now, or under existing
Governmental Rules will in the future be, required to be obtained or made, as
the case may be, by the Borrower to authorize the execution and delivery by the
Borrower of this Agreement or any of the other Borrower Instruments, the
consummation by the Borrower of the transactions contemplated hereby or thereby,
or the performance by the Borrower of its obligations hereunder or
thereunder.

    

    Section
8.7  No
Conflicts or Violations.

    

    The
execution and delivery by the Borrower of this Agreement or any of the other
Borrower Instruments, the consummation by the Borrower of the transactions
contemplated hereby or thereby, and the performance by the Borrower of its
obligations hereunder or thereunder do not and will not conflict with or
violate, result in a breach of, or constitute a default under (a) any term or
provision of the charter documents or bylaws of the Borrower; (b) any of the
covenants, conditions or agreements contained in any Other Debt Obligation of
the Borrower; (c) any Governmental Approval or Governmental Registration
obtained or made, as the case may be, by the Borrower; or (d) any Governmental
Judgment or Governmental Rule currently applicable to the Borrower. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section 8.8  All
Necessary Governmental Actions.

    

    The
Borrower has not failed to obtain any material Governmental Approval or make any
material Governmental Registration required or necessary to carry on the
business of the Borrower as presently conducted, and the Borrower reasonably
believes that it will not be prevented by any Governmental Authority having
jurisdiction over the Borrower from so carrying on its business as presently
conducted.

    

    Section 8.9  No
Material Litigation.

    

    There are
no lawsuits or judicial or administrative actions, proceedings or investigations
pending or, to the best knowledge of the Borrower, threatened against the
Borrower which, in the reasonable opinion of the Borrower, is likely to have a
Material Adverse Effect on the Borrower.

    

    

    ARTICLE
9

    

    BILLING
BY FFB

    

    

    Section
9.1  Billing
Statements to the Borrower and the Department.

    

    FFB shall
prepare a billing statement for the amounts owed to FFB on each Advance that is
made under each Note purchased under this Agreement, and shall deliver each such
billing statement to the Borrower and the Department.

    

    Section
9.2  Failure
to Deliver or Receive Billing Statements No Release.

    

    Failure
on the part of FFB to deliver any billing statement or failure on the part of
the Borrower to receive any billing statement shall not, however, relieve the
Borrower of any of its payment obligations under the Note or this
Agreement.

    

    Section
9.3  FFB
Billing Determinations Conclusive.

    

    9.3.1  Acknowledgment and
Consent.  The Borrower acknowledges that FFB has described to
it: 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (a) the
rounding methodology employed by FFB in calculating the amount of accrued
interest owed at any time on each Note; and

    

    (b) the
methodology employed by FFB in calculating the equal principal installments
payment schedule for amounts due and payable on each Note;

    

    and the
Borrower consents to these methodologies.

    

    9.3.2  Agreement.  The
Borrower agrees that any and all determinations made by FFB shall, absent
manifest error, be conclusive and binding upon the Borrower with respect
to:

    

    (a) the
amount of accrued interest owed on each Note determined using this rounding
methodology; and

    

    (b) the
amount of any equal principal installments payment due and payable on each Note
determined using this methodology.

    

    

    ARTICLE 10

    

    PAYMENTS
TO FFB

    

    

    Each
amount that becomes due and owing on each Note purchased under this Agreement
shall be paid when and as due, as provided in the respective Note.

    

    

    ARTICLE
11

    

    SECRETARY'S
RIGHT TO PURCHASE ADVANCES OR ANY NOTE

    

    

    Notwithstanding
the provisions of each of the Notes, the Borrower acknowledges that, under the
terms of the Program Financing Agreement, the Secretary may purchase from FFB
all or any portion of any Advance that has been made under any Note, or may
purchase from FFB any Note in its entirety, in the same manner, at the same
price, and subject to the same limitations as shall be applicable, under the
terms of such Note, to a prepayment by the Borrower of all or any portion of any
Advance made under such Note, or a prepayment by the Borrower of such Note in
its entirety, as the case may be. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    ARTICLE
12

    

    EFFECTIVE
DATE, TERM, SURVIVAL

    

    

    Section
12.1  Effective
Date.

    

    This
Agreement shall be effective as of the date first above written.

    

    Section
12.2  Term
of Commitment to Make Advances.

    

    The
obligation of FFB under this Agreement to make Advances under each Note issued
by the Borrower shall expire on the "Last Day for an Advance" specified in the
respective Note.

    

    Section
12.3  Survival.

    

    12.3.1  Representations, Warranties,
and Certifications.  All representations, warranties, and
certifications made by the Borrower in this Agreement, or in any agreement,
instrument, or certificate delivered pursuant hereto, shall survive the
execution and delivery of this Agreement, the purchasing of the Notes hereunder,
and the making of Advances thereunder.

    

    12.3.2  Remainder of
Agreement.  Notwithstanding the occurrence and passage of the
Last Day for an Advance, the remainder of this Agreement shall remain in full
force and effect until all amounts owed under this Agreement and each of the
Notes purchased by FFB under this Agreement have been paid in full. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    ARTICLE
13

    

    MISCELLANEOUS

    

    

    Section 13.1  Notices.

    

    13.1.1  Addresses of the
Parties.  All notices and other communications hereunder or under
any Note to be made to any party shall be in writing and shall be addressed as
follows:

    

    To
FFB:

    

    Federal
Financing Bank

    Main
Treasury Building

    1500
Pennsylvania Avenue, NW

    Washington,
DC  20220

    

    Attention:  Chief
Financial Officer

    

    
      	
               
      

            	
              Telephone
      No.

            	
              (202)
      622-2470

            

    

    
      	
               
      

            	
              Facsimile
      No.

            	
              (202)
      622-0707

            

    

    

    

    

    To the
Borrower:

    

    Ford
Motor Company

    One
American Road

    Dearborn,
MI 48126

    

    Attention:  Treasurer

    

    
      	
               
      

            	
              Telephone:

            	
              (313)
      322-3533

            

    

    
      	
               
      

            	
              Facsimile:

            	
              (313)
      322-3359

            

    

    

    To the
Secretary (or the Department):

    

    Director

    Advanced
Technology Vehicles Manufacturing Loan Program

    CF-1.4

    United
States Department of Energy 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    1000
Independence Avenue, SW

    Washington,
DC  20585

    

    
      	
               
      

            	
              Telephone
      No.

            	
              (202)
      586-8146

            

    

    
      	
               
      

            	
              Facsimile
      No.

            	
              (202)
      586-7809

            

    

    

    Copies
of all legal notices and correspondence should also be sent to:

    

    Office of
the General Counsel

    GC-1

    United
States Department of Energy

    1000
Independence Avenue, SW

    Washington,
DC  20585

    
      	
               
      

            	
              Telephone
      No.

            	
              (202)
      586-5281

            

    

    
      	
               
      

            	
              Facsimile
      No.

            	
              (202)
      586-1499

            

    

    

    The
address, telephone number, or facsimile number for any party may be changed at
any time and from time to time upon written notice given by such changing party
to each of the other parties hereto.

    

    13.1.2  Permitted Means of
Delivery.  Advance Requests, notices, and other communications
to FFB may be delivered by facsimile (fax) transmission of the executed
instrument.

    

    13.1.3  Effective Date of
Delivery.  A properly addressed notice or other communication
shall be deemed to have been "delivered" for purposes of this
Agreement:

    

    (a) if
made by personal delivery, on the date of such personal delivery;

    

    (b) if
mailed by first class mail, registered or certified mail, express mail, or by
any commercial overnight courier service, on the date that such mailing is
received;

    

    (c) if
sent by facsimile (fax) transmission:

    

    (1) if
the transmission is received and receipt confirmed before 4:00 p.m. (Washington,
DC, time) on any Business Day, on the date of such transmission; and 

       

       

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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (2) if
the transmission is received and receipt confirmed after 4:00 p.m. (Washington,
DC, time) on any Business Day or any day that is not a Business Day, on the next
Business Day.

    

    13.1.4  Notices to FFB to Contain
FFB Identification References.  All notices to FFB making any
reference to any Note or any Advance made under such Note shall identify the
respective Note or such Advance by the respective Note Identifier or the
respective Advance Identifier, as the case may be, assigned by FFB to such Note
or such Advance.

    

    Section
13.2  Amendments.

    

    No
provision of this Agreement may be amended, modified, supplemented, waived,
discharged, or terminated orally but only by an instrument in writing duly
executed by each of the parties hereto and consented to in writing by or on
behalf of the Secretary.

    

    Section
13.3  Successors and
Assigns.

    

    This
Agreement shall be binding upon and inure to the benefit of each of FFB, the
Borrower, and the Secretary, and each of their respective successors and
assigns.

    

    Section
13.4  Sale
or Assignment of Note.

    

    13.4.1  Sale or Assignment
Permitted.  FFB may sell, assign, or otherwise transfer all or
any part of any Note or any participation share thereof; provided, however, that, notwithstanding the
foregoing, following any such sale, assignment or transfer, FFB shall continue
to be fully liable for its duties and obligations hereunder and under such
Note.

    

    13.4.2  Notice of Sale,
Etc.

    

    (a) Sale,
Etc., to a Federal Entity.  In the case of any sale, assignment, or
other transfer by FFB of all or any part of any Note or any participation share
thereof to an agency or instrumentality of the United States or a trust fund or
other government account under the authority or control of the United States or
any officer or officers thereof, FFB will deliver to the Borrower and the
Department written notice of such sale, assignment, or other transfer promptly
after such sale, assignment, or other transfer. 

       

       

      NOTE PURCHASE AGREEMENT - page
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                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    (b) Sale,
Etc., to Other Than a Federal Entity.  In the case of any sale,
assignment, or other transfer by FFB of all or any part of any Note or any
participation share thereof to a purchaser, assignee, or transferee that is not
an agency or instrumentality of the United States or a trust fund or other
government account under the authority or control of the United States or any
officer or officers thereof, FFB will deliver to the Borrower and the Department
written notice of such sale, assignment, or other transfer at least 45 calendar
days in advance of such sale, assignment, or other transfer.

    

    13.4.3  Manner of Payment after
Sale.  Any sale, assignment, or other transfer of all or any
part of any Note may provide that, following such sale, assignment, or other
transfer, payments on such Note shall be made in the manner specified by the
respective purchaser, assignee, or transferee, as the case may be.

    

    13.4.4  Replacement
Notes.  The Borrower agrees:

    

    (a) to
issue a replacement Note or Notes with the same aggregate principal amount,
interest rate, maturity, and other terms as each respective Note or Notes sold,
assigned, or transferred pursuant to section 13.4.1 of this Agreement; provided, however, that, when
requested by the respective purchaser, assignee, or transferee, such replacement
Note or Notes shall provide that payments thereunder shall be made in the manner
specified by such purchaser, assignee, or transferee; and

    

    (b) to
effect the change in ownership on its records and on the face of each such
replacement Note issued, upon receipt of each Note or Notes so sold, assigned,
or transferred. 

       

       

      NOTE PURCHASE AGREEMENT - page
24

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section
13.5  Forbearance Not a
Waiver.

    

    Any
forbearance on the part of FFB from enforcing any term or condition of this
Agreement shall not be construed to be a waiver of such term or condition or
acquiescence by FFB in any failure on the part of Borrower to comply with or
satisfy such term or condition.

    

    Section
13.6  Rights
Confined to Parties.

    

    Nothing
expressed or implied herein is intended or shall be construed to confer upon, or
to give to, any Person other than FFB, the Borrower, and the Secretary, and
their respective successors and permitted assigns, any right, remedy or claim
under or by reason of this Agreement or of any term, covenant or condition
hereof, and all of the terms, covenants, conditions, promises, and agreements
contained herein shall be for the sole and exclusive benefit of FFB, the
Borrower, and the Secretary, and their respective successors and permitted
assigns.

    

    Section
13.7  Governing
Law.

    

    This
Agreement and the rights and obligations of the parties hereunder shall be
governed by, and construed and interpreted in accordance with, Federal law and
not the law of any state or locality.  To the extent that a court
looks to the laws of any state to determine or define the Federal law, it is the
intention of the parties hereto that such court shall look only to the laws of
the State of New York without regard to the rules of conflicts of
laws.

    

    Section
13.8  Severability.

    

    Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not of itself invalidate or render unenforceable such
provision in any other jurisdiction. 

       

       

      NOTE PURCHASE AGREEMENT - page
25

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    Section
13.9  Headings.

    

    The
descriptive headings of the various articles, sections, and subsections of this
Agreement were formulated and inserted for convenience only and shall not be
deemed to affect the meaning or construction of the provisions
hereof.

    

    Section 13.10  Counterparts.

    

    This
Agreement may be executed in separate counterparts, each of which when so
executed and delivered shall be an original, but all of which together shall
constitute but one and the same instrument. 

       

       

      NOTE PURCHASE AGREEMENT - page
26

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      
        
          	
                  DOE
      (ATV)

                	
                  FORD
      MOTOR COMPANY

                

        

      

      
 

    

    IN WITNESS WHEREOF, FFB, the
Borrower, and the Secretary have each caused this Agreement to be executed as of
the day and year first above mentioned.

    

    

    
      	 
      	 	
              FEDERAL
      FINANCING BANK

            
	 
      	 	
              ("FFB")

            	 
      
	 
      	 	 
      	 
      
	 
      	 	
              By:

            	
              /s/
      Richard L. Gregg

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              Name:

            	
              Richard
      L. Gregg

            
	 
      	 	 
      	 
      
	 
      	 	
              Title:

            	
              Vice
      President

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              FORD
      MOTOR COMPANY

            
	 
      	 	
              (the
      "Borrower")

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              By:

            	
              /s/
      Neil M.Schloss

            	
               

            
	 
      	 	 
      	 
      
	 
      	 	
              Name:

            	
              Neil
      M. Schloss

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              Title:

            	
              Vice
      President and Treasurer

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              THE
      SECRETARY OF ENERGY

            
	 
      	 	
              (the
      "Secretary")

            
	 
      	 	
              acting
      through his or her

            
	 
      	 	
              duly
      authorized designate

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              By:

            	
              /s/
      Lachlan Seward

            
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
              Name:

            	
              Lachlan
      Seward

            
	 
      	 	 
      	 
      
	 
      	 	
              Title:

            	
              Director,
      Advanced Technology Vehicles Manufacturing Loan
  Program

            

    

    
       

       

      NOTE PURCHASE AGREEMENT - page
27

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