Information on the Nissan Vehicle Purchase Program (VPP)

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NISSAN NORTH AMERICA, INC.
Corporate Office
18501 South Figueroa St.
Gardena, California 90248-4500
Mailing Address: P.O. Box 191
Gardena, California 90248-0191

March 1, 2006
To: All Nissan Dealers
Subject: Nissan Vehicle Purchase Program

The Vehicle Purchase Program (VPP) provides special vehicle purchase opportunities to our best customers; our own Nissan Employees andNissan’s Business Associates.

Dealer benefits
VPP purchases count as retail sales and therefore qualify towards retail objective attainment and are also eligible for retro bonus payments.

Dealers also earn a dealer delivery fee (payment) for each VPP sale or lease.

Eligible VPP participants

A Plan: Direct full-time NNA employees & immediate family members (children, mother, father, brother, sister & in-laws) and NNA retirees.

B Plan: Direct full time employees of Affiliate company employees; NDA, Nissan Forklift, etc., & immediate family members (children, mother, father, brother, sister & in-laws) and affiliate retirees.

C Plan: Extended family (uncle, aunt, nephew, niece & cousin) and Friends of NNA employees. Full- time employees of Nissan may sponsor up to four (4) extended family members or friends purchases per year. Please note that employees of authorized Nissan and Infiniti dealerships are considered Business Associates (D Plan) and therefore are not eligible to sponsor family members or friends as part of the C Plan.

D Plan: Business associates; full time employees of eligible vendors to NNA & its affiliates, in addition to employees of authorized Nissan dealerships. Please note that D plan participants are not eligible to sponsor family members or friends.

VPP vehicle pricing
VPP pricing is most easily calculated online utilizing the VPP claim number provided by the customer, and visiting NNANet orhttp://www.vehiclepurchaseprogram.com. VPP pricing may also be manually calculated as follows:

• A/B Plan:
  1) Dealer invoice (less D&H)
  2) VPP discount (3.58% of line 1)
  3) VPP net price (line 1 – line 2)
  4) Dealer installed options (IEEPP, accys., etc.)
  5) D&H fee (from invoice)
  6) Cust. incentive (from current C&I)
  7) VPP purchase price (line 3+4+5-6)

  ◊ Dealer delivery payment is 5% of line 3

• C/D Plan:
  1) Dealer invoice (less D&H)
  2) VPP discount (1.65% of line 1)
  3) VPP net price (line 1 – line 2)
  4) Dealer installed options (IEEPP, accessories, etc.)
  5) Dealer delivery fee (2.5% of line 3)
  6) D&H (from invoice)
  7) Cust. incentive (from current C&I)
  8. VPP purchase price (3+4+5+6-7)

  ◊ Dealer delivery payment is 2.5% of line 3

Any Dealer-installed accessories, service contracts, trade negative equity (if applicable), registration fees, title fees and taxes are added to the VPP price to determine the total cost of purchase.

Nissan new vehicles may also be leased through VPP. In some cases, NMAC lease cash is also offered, however either the customer cash or the NMAC lease cash may be utilized for the VPP sale (not both).
Dealers should contact their NMAC representative or their Infiniti national sales support team if there is a question regarding NMAC lease incentive or support applicability to a VPP sale.

VPP customer incentives

In support of this program, all current retail customer cash vehicle incentives are offered in addition to the VPP discount.
All current retail customer cash incentives and NMAC lease cash programs apply to VPP (but not both). Please refer to your current C&I customer cash & NMAC lease cash programs for all retail incentives by model.

Models eligible for VPP
All MY05 and MY06 Nissans: Sentra, Altima, Maxima, 350Z, Xterra, Pathfinder, Armada, Murano, Frontier, Titan & Quest. You may also visithttp://www.insidenissan.com to view all eligible models.

VPP sales reporting
The retail/lease core incentive will be paid to the Dealer by electronic funds transfer upon reporting of the sale via the NissanNet system. Please utilize sale type B when RDRing all VPP transaction sales or leases:

VPP sale or lease: Sales type ‘B’

Dealer delivery fee (payment to the Dealer)
To receive the Nissan portion of the delivery fee, Dealers must submit the following supporting documentation to program headquarters for each VPP sale:

1. The VPP claim form printed from the website (http://www.vehiclepurchaseprogram.com) completed accurately and including all signatures.
2. Employment verification of eligible employee (i.e., business card, paycheck stub, or company photo ID).
3. Copy of the vehicle invoice signed by the participant.
4. Copy of the purchase agreement and buyer’s order (finance contract or cash receipt) or lease agreement, dated and including all signatures (please note that the purchase price on the sales agreement must match the participant’s purchase price that is calculated on the claim form, or a negative trade equity/previous lease payoff statement must accompany the agreement to verify the difference).
5. Documentation of all Dealer-added options/Infiniti Elite Extended Protection Plan (i.e., “We Owe” statements signed by the customer), indicating items installed and purchase price.

Send documentation to:
VPP Program Headquarters
1400 South Highway Drive
Fenton, MO 63099

**REMINDER** If a dealership does not submit requested corrections to VPP headquarters within 120 days, the NNA portion of the delivery fee will not be paid.

Please see the VPP manual (http://www.vehiclepurchaseprogram.com) and/or http://www.insidenissan.com for additional VPP information.

By participating in a VPP sale, the Dealer voluntarily agrees to accept the VPP referral customer’s offer, and to sell the eligible new vehicle based upon the offer to purchase from the VPP customer at the VPP purchase price.

Should you have any questions concerning the Vehicle Purchase Program, please contact VPP Program Headquarters at 800-299-4753, 8:00am – 4:30pm (central time), M-F.

Regards,

Reed Johnson
Senior Manager, Fleet Sales