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EXHIBIT 10(b)
FEBRUARY 20, 1997
FORD/HERTZ FRAMEWORK SUPPLY AGREEMENT
AGREEMENT OBJECTIVE - Ford agrees to provide vehicles to Hertz for use in its
daily rental business and Hertz agrees to acquire such vehicles. Ford and Hertz
agree to negotiate in good faith on an annual basis to provide and acquire
vehicles at an adequate volume and with the best possible terms and conditions.
TERM OF CONTRACT - September 1, 1997 to August 31, 2007 (10 years).
FORD VOLUME COMMITMENT - Ford agrees to provide for Hertz acquisition the lesser
of 150,000 units or 55% of Hertz' U.S. domestic fleet annually for use in its
daily rental business. Ford will make its best efforts to supply 35% of Hertz
European fleet and 55% of Hertz fleet requirements in its other non-U.S.
operations. A minimum of 50% of all such vehicles shall be non-risk units
(repurchase).
HERTZ VOLUME COMMITMENT - Hertz agrees to acquire from Ford the lesser of
150,000 units or 55% of its U.S. domestic fleet annually for use in its daily
rental business. Hertz also agrees to acquire 35% of its European fleet from
Ford and 55% of its fleet for other non-U.S. operations from Ford. A minimum
of 50% of all such vehicles shall be non-risk units (repurchase).
COMPETITIVE SUPPLY - Ford will strive to develop fleet offerings for use in the
daily rental business that shall be competitive with those similar offerings by
other automotive manufacturers, as to terms and conditions. In addition, Ford
will make available to Hertz, Ford vehicles on terms that are no less favorable
than Ford makes available to other daily rental companies, excluding franchised
Ford and Lincoln-Mercury Dealers.
/s/ X. X. Xxxxx /s/ X. X. Xxxxx
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Xx. X. X. Xxxxx Xx. X. X. Xxxxx
Group V.P., Marketing and Sales Chairman of the Board
Operations The Hertz Corporation
Ford Motor Company
