Document:

DEIP as amended through 2-16-05

                                          

    

      EXHIBIT
        10.8

       

      CATERPILLAR
        INC.

      

      DEFERRED
        EMPLOYEES'

      INVESTMENT
        PLAN

      (Amended
        and Restated through 2/2005)

      

       

      
        	 1.    	 Purpose

      

       

          The
        purpose of the Caterpillar Inc. (Company) Deferred Employees' Investment
        Plan
        (DEIP), as set forth in the succeeding sections of this document, is to provide
        additional investment opportunities for those employees whose participation
        (through 2002) in the Employees’ Investment Plan and (after 2002) in the
        Caterpillar 401(k) Plan (401(k) Plan) is restricted because of limitations
        imposed by the Internal Revenue Code of 1986, as amended. The DEIP was
        originally effective June 30, 1995.

       

      
        	
                 2.   

              	 Eligibility

      

       

      An
        employee shall
        be eligible to participate in the DEIP if he [is in salary grade 28 or higher
        and] currently defers compensation into the 401(k) Plan.

       

      
        	
                 3.   

              	 Participant
                Deferrals

      

       

          An
        employee must
        make a valid election (to become a "Participant") on or before the last Company
        business day in November of any year to participate in the DEIP during the
        following calendar year. Such election shall defer all or a portion of his
        compensation not to exceed the excess of (a) seventy percent (70%) of his
        base
        salary over (b) the total amount deferred by him into the 401(k) Plan; provided
        that his election to defer hereunder shall be contingent on his making the
        maximum deferral allowable under the 401(k) Plan. Any such election must
        be made
        (on a form provided by the Company) and delivered to the Director, Compensation
        and Benefits before the end of normal office hours on such last Company business
        day in November and shall remain in effect until it is revised as provided
        herein.

       

      An
        employee may
        also elect to defer all or part of the incentive compensation payable to
        him for
        a calendar year; provided, however, that such Participant’s election must be
        filed with such Director on or before the last Company business day in November
        of the year in which such compensation shall have been accruing. For this
        purpose, a Participant may elect to defer up to seventy percent (70%) of
        the
        base salary payable to him for a calendar year; provided, however, that such
        Participant’s election must be filed with such Director on or before the last
        Company business day in November of the preceding calendar year.

       

      For
        all purposes of
        the Plan, base salary shall include any lump sum base salary adjustment
        including any variable base pay and incentive compensation shall include
        any
        lump sum discretionary awards.

       

       1

      
        

      

      If
        a Participant
        wants to change or terminate the amount of compensation deferred, he shall
        deliver a revised election form to the Director, Compensation and Benefits;
        provided, however, that:

       

       

      	(a) 	
              such
                revised
                election shall become effective (when and so long as the Participant
                is
                eligible) for each calendar year following the year in which such
                form is
                delivered, and shall remain effective until such election is further
                revised as provided herein, and

            

       

       

      	(b) 	
              any
                such
                election must be filed before the end of normal office hours on the
                last
                Company business day in November.

            

       

      When
        an employee
        first becomes eligible to participate in the DEIP (including those employees
        who
        first become eligible on the effective date), he may elect to defer compensation
        (or file a revised election) in accordance with the foregoing, except that
        any
        such election with respect to compensation payable to him during the calendar
        year in which he becomes eligible for the DEIP

       

      
        	(a) 	
                
                  must
                    be filed
                    within a 30-day period that begins on the date he becomes eligible,
                    and

                

              

      

       

       

      
        	(b) 	
                shall
                  be
                  applicable only to compensation paid for months that
                  commence
                  after the date of such
                  election.

              

      

       

       

      
        	
                 4.   

              	
                Employer
                  Amounts

              

      

       

           An
        employee
        will be credited with the same amount that would otherwise be contributed
        to his
        account as an employer contribution under the 401(k) Plan were it not for
        the
        limitations imposed by Section 401(a)(17) and 415(c)(1)(A) of the Internal
        Revenue Code of 1986, as amended, or any successor statute thereto.

       

       

      
        	
                 5.  

              	
                
                  Status
                    of
                    Accounts

                

              

      

       

          All
        amounts in the
        DEIP shall be held in the general funds of the Company, but the Company will
        establish an individual bookkeeping account for each Participant. Amounts
        of
        compensation deferred by the Participant will be credited to the individual
        account of the Participant in accordance with his election(s).

       

          Each
        Participant may
        elect to have all or a specified percentage if his deferred compensation
        allocated to:

       

       

      	(a)
                	
              interest
                bearing account;

            

       

       

      	(b)
                	
              share
                equivalency account and calculated as if invested in Company common
                stock
                (“Stock Election”);

            

       

       2
        
          

        

      

       

      	 (c)
                 	
              mutual
                fund
                account or accounts and calculated as if invested in any of the following
                Preferred Group funds: Asset Allocation, International Value, Large
                Cap
                Growth, Large Cap Value, Small Cap Growth;
                or

            

       

       

      	(d) 
                	
              U.S.
                Equity
                Broad Index account and calculated as if invested in the Russell
                3000
                Index Fund.

            

       

      Amounts
        allocated
        to the stock account of a Participant who is an officer of the Company subject
        to Section 16 of the Securities Exchange Act of 1934 (“Officer”) may not be
        transferred to another of his accounts (nor may amounts allocated, respectively,
        to any such other account be transferred to his stock account) until at least
        six months after he ceases to be subject to such Section.

       

      Under
        such a Stock
        Election, dividend equivalents will accrue to the account (when dividends
        are
        payable) and will be reinvested and a Participant’s account will in all other
        respects reflect share ownership for events such as a stock split but no
        voting
        rights will exist. The number of shares of stock equivalents shall be determined
        by dividing the amount of deferred compensation (or dividend equivalents
        credited) by the closing price of Company common stock on the New York Stock
        Exchange on the date of such deferral or dividend credit (or the next succeeding
        trading day if there is no trading on that date). Stock equivalents will
        be
        valued based on the closing price of Company common stock on the New York
        Stock
        Exchange as of the effective date of a transfer into or out of the stock
        account
        (“Transfer”), the date on which the Participant terminates employment, the date
        of distribution elected by the Participant hereunder or the date as of which
        he
        is considered totally and permanently disabled under the 401(k) Plan, whichever
        date applies (or the next succeeding trading day if there is no trading on
        that
        date).

       

      The
        Company will
        credit interest accounts on a monthly basis. The interest rate will be equal
        to
        the base corporate lending rate (sometimes referred to as the "prime rate")
        applicable to commercial lending customers of Citibank, N.A., New York, New
        York
        (or any successor thereto) on the last business day of each calendar month.
        The monthly
        interest rate will be compounded daily and applied effective the last day
        of
        each month.

       

      Participants
        who
        are not Officers may Transfer or make changes to the investment allocation
        of
        future deferred compensation which shall be effective as of the first day
        of a
        calendar quarter, provided that such Participant shall have filed an appropriate
        form with the Director, Compensation and Benefits, by the twentieth (20th)
        day
        of the preceding month.

       

      All
        amounts in the
        DEIP and the establishment of individual bookkeeping accounts shall not be
        deemed to have created a trust, and no Participant shall have any ownership
        interest in any such account. A Participant's rights to any amounts credited
        to
        his account shall not be transferable or assignable. Each Participant will
        receive an annual report showing the status of his account at the close of
        each
        calendar year.

       

      
        	
                 6.  

              	
                
                  Disbursement

                

              

      

       

          Following
        his
        termination of employment with the Company (or total and permanent disability),
        the value of the Participant's DEIP account will be payable to him as soon
        as
        practicable in cash, in a lump sum (including interest up to the date of
        payment) unless such Participant has elected a later payment date in writing
        that is acceptable to and approved by the Director, Compensation and Benefits;
        provided, however, that no such election shall be effective unless it shall
        have
        been filed on or before the last Company business day in November of the
        calendar year preceding the calendar year of such termination. 

       

      For
        Participants
        who are officers of the Company subject to Section 16 of the Securities Exchange
        Act of 1934, the payment date under DEIP, with respect to amounts in the
        stock
        account, must be at least six months after the date on which the Participant’s
        final deferral into DEIP became irrevocable.

       

      A
        Participant may
        elect, either before or after termination of employment, an installment
        distribution for a period of up to 15 years; provided, however, that an election
        of installment distribution shall be effective only if it shall have been
        filed
        with the Director, Compensation and Benefits, before November 30 of the second
        year that precedes the year in which the distribution would otherwise
        occur.

       

      Notwithstanding
        the
        foregoing, effective for amounts deferred after December 31, 1996 (and any
        earnings thereon):

       

       

      	(a)  	
              a
                Participant
                may elect one original scheduled withdrawal date as of which disbursement
                of elected amounts (and any earnings thereon) shall occur; provided
                that
                (i) such original date shall be the first day of any calendar quarter
                that
                is at least four years later than the year in which such an amount
                is
                deferred, and (ii) the Participant may change such original date
                to a
                later date, provided, however, that such change shall be effective
                only if
                it shall have been filed with the Director, Compensation and Benefits,
                before November 30 of the second year that precedes the year that
                includes
                such original date;

            

       

       

      	(b)  	
              a
                Participant
                may elect unscheduled withdrawals of between 5% and 100% of account
                assets
                attributable to such amounts deferred after December 31, 1996 (and
                any
                earnings thereon); provided that (i) the amount withdrawn shall be
                subject
                to a forfeiture equal to 10%, and the Participant shall discontinue
                participation in the plan for the remainder of the year (in which
                such
                withdrawal occurs) and for the following year and (ii) the minimum
                withdrawal amount (before forfeiture) shall be $10,000;
                and

            

       

       

      	(c)  	
              such
                withdrawals under (a) or (b) shall be applied against the assets
                of the
                Deferred Employees’ Investment Plan as well as this plan, and shall be
                subject to such other rules of convenience and administration as
                shall be
                determined by the Director, Compensation and
                Benefits.

            

       

       

      
        	
                 7.  

              	
                
                  Death
                    of a
                    Participant

                

              

      

       

           Upon
        the death
        of a Participant prior to payment of his DEIP account, the balance in the
        Participant's account (including interest for the elapsed portion of the
        year of
        death) shall be determined as of the date of death. Such balance shall be
        paid
        as soon as reasonably possible thereafter in a lump sum payment to (i) the
        same
        beneficiary or beneficiaries and in the same proportionate amount as he shall
        have designated under the 401(k) Plan, in the absence of any designation
        to the
        contrary, or (ii) the beneficiary or beneficiaries for purposes of the DEIP
        as
        such Participant shall have designated in writing (in a form acceptable to,
        and
        filed with, the Director, Compensation and Benefits).

       

      Notwithstanding
        the
        above, if the Participant has elected on a form that has been filed with
        and
        approved by the Director, Compensation and Benefits, amounts payable to the
        beneficiary may be paid at the payment date selected by the Participant and
        with
        an installment distribution for a period to 15 years, or under the remaining
        installment schedule in place for the Participant.

       

       

      
        	
                 8.  

              	
                
                  Amendment
                    or Termination

                

              

      

       

       

      The
        Compensation
        Committee of the Board of Directors or the Investment Plan Committee (for
        the
        401(k) Plan) may at any time amend, merge, consolidate or terminate the DEIP,
        but no amendment, merger, consolidation or termination will have the effect
        of
        reducing the amount that any Participant is entitled to receive prior to
        such
        amendment, merger, consolidation or termination nor of changing the time
        of
        payment of any amount credited to a Participant's account.

       

       

      
        	
                 9.  

              	
                
                  Administration

                

              

      

       

      Except
        as otherwise
        expressly provided herein, the DEIP shall be administered under the direction
        of
        the Director, Compensation and Benefits, of the Company.Ex. 10.1 Management Phantom Stock Plan

    
      
        EXHIBIT 10.1

         

        
          

            FFE
              TRANSPORTATION SERVICES, INC.

            MANAGEMENT
              PHANTOM STOCK PLAN

            

            This
              Phantom Stock Plan (hereafter the “Plan”), entered into as of May 13, 1992 (the
“Effective Date”), by FFE Transportation Services, Inc., a Delaware corporation
              (“FFE”) which is a wholly owned subsidiary of FFE, Inc. (“Industries”), a public
              Texas corporation, for the benefit of certain managers covered by the
              FFE
              Transportation Services, Inc., Executive and Management Bonus Program
              (the
“Program”).

            

            RECITALS

            

            FFE
              has
              established the Program for the benefit of specified managers of FFE.
              In order
              to enhance the benefits to the managers under the Program, allow the
              managers to
              share in the growth of FFE through the appreciation in the value of the
              common stock of Industries, and to provide the managers with greater
              incentive
              to promote the growth of Industries shareholder value, FFE desires
              to establish
              a Management Phantom Stock Plan (the “Plan”) which will allow the managers to
              elect to acquire hypothetical (“Phantom”) shares in FFE.

            

            AGREEMENTS

            

            NOW,
              THEREFORE, in consideration of the foregoing premises and the mutual
              covenants
              and agreements contained in this Plan, FFE hereby agrees as
              follows:

            

            
              	
                      1.

                    	
                      Definitions.
                        For the purposes of this Plan, the following terms shall
                        have the meanings
                        as set forth below:

                    

            

          

        

        

           

          (a) The
            term
“Phantom Shares” shall mean the Phantom Shares at any time acquired by FFE for
            the benefit of the Participants, as the number thereof may be adjusted
            from time
            to time and held by FFE for the Participants pursuant to the terms of
            this
            Plan.

           

           

          (b) The
            term
“Participant” shall mean each manager designated on Exhibit A attached hereto
            and made a part hereof who is designated as eligible to receive benefits
            under
            the Program and this Plan.

           

           

          (c) The
            term
“Phantom Share Value” shall mean the value assigned to a Phantom Share as
            provided in this Plan.

           

           

          (d) The
            term
“Phantom Share” shall mean a fictitious share of the Stock which will carry with
            it certain rights and benefits as described more particularly herein
            but which
            will not entitle the holder thereof either to equity rights in FFE, Inc.
            or
            Industries or to any type of voting rights in FFE, Inc. or
            Industries.

           

           

          (e) The
            term
“Allocated Phantom Shares” shall mean all Phantom Shares acquired by FFE
            pursuant to the terms of this Plan and held and allocated by FFE for
            the benefit
            of the Participants as herein provided.

           

           

          (f) The
            term
“Participant’s Allocated Phantom Shares” shall mean the allocated Phantom Shares
            allocated by FFE to a specific Participant’s account as provided in the
            Plan.

           

           

          (g) The
            term
“Stockholder” shall mean the party or parties who own Stock on the date of this
            Agreement.

           

           

          (h) The
            term
“Stock” shall mean all of the issued and outstanding shares of common stock of
            Industries and shall not include any Phantom Shares.

           

           

          (i) The
            term
“Triggering Event” shall mean any of the events provided for in Section 6, the
            occurrence of which shall give rise to an obligation or right of FFE
            to such
            Participant of the Phantom Share Value of Participant’s Allocated Phantom
            Shares.

           

           

          (j) The
            term
“Disability” shall mean any condition which causes the Participant to fail to
            devote his full time and reasonable best efforts to the performance of
            his
            duties and responsibilities for a period of in excess of ninety (90)
            consecutive
            days.

           

           

          (k) The
            term
“Employee’s Relative Percentage” shall mean at any point in time the fraction,
            expressed as a percentage, in which the numerator is the number of the
            Employee’s allocated Phantom Shares at such time and the denominator is the sum
            of the total number of shares of issued and outstanding Stock at such
            point in
            time plus the total number of allocated Phantom Shares at such point
            in
            time.

           

           

          (l) The
            term
“Election Period” shall mean the period of December 1 to December 15 inclusive
            for each year.

           

           

          2. Purchase
            of Phantom Shares

           

           

          (a) Pursuant
            to the terms of the Program, each Participant in this Plan shall be entitled
            to
            an incentive bonus calculated pursuant to the formula shown on Exhibit
            B
            attached to this Plan Agreement. On or before December 15 of each calendar
            year,
            each Participant may elect to defer up to 50% of their incentive bonus
            for that
            year, which deferred amount shall be applied to the acquisition of Phantom
            Shares. FFE shall acquire and hold, for the benefit of each Participant,
            the
            Phantom Shares acquired for the benefit of that Participant with the
            deferred
            amount. The number Phantom Shares to be acquired for any Participant
            shall be
            equal to the amount of the Participant’s deferral amount divided by the
            applicable Phantom Share Value.

           

           

          (b) For
            the
            purpose of Section 2(a) above, the applicable Phantom Share Value shall
            mean the
            price of a share of Stock as quoted on the American Stock Exchange as
            of the
            last business day of that calendar year for which the Participant’s deferral
            election was effective.

           

           

          (c) Each
            Phantom Share acquired for the benefit of a Participant shall be allocated
            to
            individual Participant accounts and held and maintained by FFE as an
            Allocated
            Phantom Share for the benefit of the Participant.

           

           

          3. Adjustment
            to Number of Phantom Shares

           

           

          (a) For
            the
            purpose of this Agreement, the number of the Participant’s Allocated Phantom
            Shares shall be the number of Phantom Shares acquired for the benefit
            of a
            Participant and held and maintained by FFE for such Participant as provided
            in
            Section 2 above, as said number may be adjusted from time to time in
            accordance
            with the provisions of this Section 3.

           

           

          (b) In
            case
            Industries shall (i) declare a dividend or make a distribution on the
            outstanding shares of Stock in additional shares of Stock, (ii) subdivide
            or
            reclassify the outstanding shares of Stock into a greater number of shares
            of
            Stock, or (iii) combine or reclassify the outstanding shares of Stock
            into a
            lesser number of shares of Stock, the number of Participant’s Allocated Phantom
            Shares shall be adjusted immediately after the record date for such dividend
            or
            distribution of the effective date of such subdivision, combination or
            reclassification, so that such number is increased or decreased by multiplying
            such number as it existed immediately before such record date or effective
            date
            by a fraction, the numerator of which shall be the number of shares of
            Stock
            outstanding immediately after such dividend, distribution, subdivision,
            combination or reclassification, and the denominator of which shall be
            the
            number of shares of Stock outstanding immediately before such dividend,
            distribution, subdivision, combination or reclassification. In the event
            of such
            an adjustment, FFE shall deliver to the Trustee notification of such
            adjustment.

           

           

          (c) In
            case
            Industries shall issue rights or warrants to all holders of Stock entitling
            them
            to subscribe for or purchase shares of Stock at a price per share less
            than the
            Phantom Share Value of a Phantom Share, the number of the Participant’s
            Allocated Phantom Shares shall be increased by an amount equal to Participant’s
            Relative Percentage of total number of Bonus Shares (hereafter defined)
            acquired
            upon exercise of such rights or warrants. For the purposes hereof, Bonus
            Shares
            shall; mean the total number of shares of Stock purchased upon exercise
            of such
            rights or warrants less the number of shares of Stock which could have
            been
            purchased for the amount expended in exercise of such rights or warrants
            if such
            shares of Stock were purchased at a price per share equal to the Phantom
            Share
            Value of a Phantom Share.

           

           

          (d) In
            case
            Industries shall sell or issue shares of Stock, other types of equity
            securities, or rights, options, warrants or convertible or exchangeable
            securities containing the right to subscribe for other purchase shares
            of Stock
            or other types of equity securities, in any transaction other than those
            described above in this Section 3, the Participant shall not have any
            right by
            virtue of the Phantom Shares allocated to the Participant’s separate Plan
            account to purchase or acquire any such shares of Stock or other types
            of equity
            securities, or any such rights, options, warrants, or convertible or
            exchangeable securities containing the right to subscribe for, or purchase
            shares of Stock or other types of equity securities, and such sale or
            issuance
            shall not result in any adjustment in the number of Phantom Shares allocated
            to
            the Participant’s separate Plan account, notwithstanding that as a result of
            such sale or issuance Participant’s Relative Percentage may then or thereafter
            be reduced.

           

           

          4. Other
            Dividends.
            In case
            Industries shall fix a record date for the making of a distribution to
            all
            holders of shares of Stock (i) of shares of any class of stock in Industries
            other than Stock (ii) of evidences of Industries indebtedness (iii) of
            assets
            (including cash dividends or distributions but excluding dividends or
            distributions referred to elsewhere in this Section 4 or Section 3 above)
            or
            (iv) of rights or warrants to acquire securities of Industries (excluding
            those
            rights or warrants referred to in Section 3 above) then, in each such
            case, each
            Participant shall be entitled to receive that number of shares of stock,
            evidences of indebtedness or rights or warrants, or that amount of assets,
            that
            is equal to the Participant’s Relative Percentage of the total number or amount
            distributed to all holders of Stock which shall then be allocated to
            the
            Participant’s separate Plan account.

           

           

          5. Reorganization.
            In the
            case of any capital reorganization of Industries, other than pursuant
            to a
            transaction provided for in Sections 3 or 4 above, or the consolidation
            or
            merger of Industries with or into another corporation (other than a
            consolidation or merger in which Industries is the continuing corporation
            and
            which does not result in any reclassification of outstanding shares of
            Stock or
            the conversion of such outstanding shares of Stock into shares of other
            stock or
            other securities or property), or the sale of the property of Industries
            as an
            entirety or substantially as an entirety (collectively such transactions
            being
            hereafter referred to as a “Reorganization”), the Participant’s Allocated
            Phantom Shares shall convert into that number or amount of shares of
            the stock
            or other securities or cash or property which a holder of the Participant’s
            Relative Percentage of the Stock immediately prior to the consummation
            of the
            Reorganization would be entitled to receive upon consummation of such
            Reorganization. Upon such conversion , the Participant shall only have
            the
            rights with respect to such shares of stock or other securities or cash
            or
            property as do the other owners of holders thereof, and shall have no
            further
            rights, and FFE shall have no further duties or obligations, under this
            Agreement. FFE shall, upon or prior to the consummation of any such
            Reorganization of the successor corporation, or if Industries shall be
            the
            surviving corporation in any such Reorganization and is not the issuer
            of shares
            of stock or other securities or cash or property to be delivered to holders
            of
            shares of Stock outstanding at the consummation thereof, then such issuer,
            shall
            assume by written instrument the obligation to deliver to such shares
            of stock,
            securities, cash or other property as the Trustee shall be entitled to
            in
            accordance with the foregoing provisions.

           

           

          6. Triggering
            Events.
            Upon
            the occurrence of any of the following events (“Triggering Events”) FFE shall
            have an obligation, at the election of the Participant, to terminate
            all rights
            of Participant under this Agreement by paying to the Participant the
            Phantom
            Share Value of Participant’s Allocated Phantom Shares with such amount to be
            allocated to the Participant’s separate Plan account:

           

           

          (a) The
            termination of the Participant’s employment.

           

           

          (b) The
            death
            of Participant becoming subject to a Disability.

           

           

          (c) The
            participant’s written election, during an Election Period for a year to cash out
            any number or all of the Phantom Shares allocated to the Participant,
            excluding
            any Phantom Shares to be allocated for that year.

           

           

          (d) Change
            in
            Control (as defined in Treasury regulations promulgated under Internal
            Revenue
            Code Section 280G) with respect to Industries.

           

           

          However,
            with respect to an allocation of Phantom Shares, in no event can an Optional
            or
            Mandatory Triggering Event occur, earlier than the year following the
            year for
            which the allocation was made.

           

           

          7. Payment
            of Phantom Share Value.

           

           

          (a) In
            the
            event of the occurrence of a Triggering Event as described in Subsection
            6(a),
            6(c), or 6(d) above (an “Optional Triggering Event”), if Participant’s rights
            under this Agreement have not already been terminated, then FFE shall,
            unless
            the Participant elects in writing 30 days of the Optional Triggering
            Event, pay
            to the Participant, within thirty (30) days of the close of the calendar
            year in
            which the Optional Triggering Event occurs, the Phantom Share Value of
            the
            Participant’s Allocated Phantom Shares.  In the event of the occurrence of
            a Triggering Event described in Subsection 6(b) above (a “Mandatory Triggering
            Event”), if Participant’s rights under this Agreement have not been already
            terminated, then FFE shall have the obligation within thirty (30) days
            of the
            close of the calendar year in which the Mandatory Triggering Event occurs,
            to
            terminate all rights or Participant under this Agreement by paying to
            the
            Participant the Phantom Share Value Participant’s Allocated Phantom
            Shares.  In any event, such payment shall be made in a single lump
            sum.  For the purposes of this Subsection 7(a), the Phantom Share Value
            shall mean the price of a share of Stock as quoted on the American Stock
            Exchange as of the last business day of the calendar year in which the
            Optional
            Triggering Event occurs.

           

           

          (b) FFE
            may,
            but is not required to, obtain and maintain a policy of disability buyout
            insurance with respect to Participant which insurance shall provide for
            benefits
            in such amounts as FFE may determine.  The proceeds of such policy shall be
            applied in discharge of FFE’s obligation to pay the Phantom Share Value of
            Participant’s Phantom Shares, in the event that the Participant becomes subject
            to Disability.  FFE may, but is not required to also obtain and maintain
            while this Agreement remains in effect, a term policy of life insurance
            on the
            life of Participant which shall provide for benefits in such amounts
            as FFE may
            determine.  The proceeds of such policy shall first be applied in discharge
            of FFE’s obligation to pay the Phantom Share Value of Participant’s Phantom
            Shares in the event of the death of Participant and thereafter, to the
            extent of
            any excess proceeds, may be retained by FFE.  In the event that the
            proceeds of such policy if any are less than the Phantom Share Value
            of
            Participant’s Phantom shares, or the Minimum Amount if appropriate as provided
            above, the shortfall shall be paid by FFE.  In circumstances where proceeds
            are payable under either such policy, the payment of the amount that
            FFE is to
            pay may be delayed pending FFE’s receipt of such proceeds.  Notwithstanding
            the foregoing, the obtaining of any such insurance policies shall be
            subject to
            the determination by insurance companies licensed by the laws of the
            State of
            Texas that participant is insurable at standard rates and Participant
            satisfying
            all conditions required to be satisfied by any insurer, including but
            not
            limited to a pre-insurance physical, prior to the issuance of any such
            policy.

           

           

          (c) In
            the
            event that Industries consummates a Reorganization within six (6) months
            after
            the date that the participant elects to be paid or FFE becomes obligated
            (other
            than due to the death of Participant or Participant becoming subject
            to a
            Disability) to pay the Phantom Share Value of Participant’s Phantom Shares, and
            as a result of such Reorganization the holders of all of the Stock receive
            cash
            for such Stock, and if the amount of cash which a holder of Participant’s
            Relative Percentage of the Stock immediately prior to the consummation
            of such
            Reorganization would receive exceeds the amount which FFE is obligated
            to pay to
            Participant, then such amount shall be increased by the amount of such
            excess
            and such increase shall be paid by increasing the principal amount of
            FFE’s
            promissory note executed and delivered to Participant by the amount of
            such
            increase and by increasing each principal installment thereafter due
            on such
            note by an amount equal to the total of such increase divided by the
            number of
            such installments still due on such note.

           

           

          8. Board
            Discretion. 
            In the event that FFE has cash, which if the Board of Directors of FFE
            determined to do so would be available for payment of dividends to shareholders
            of FFE, notwithstanding the source of such cash, it shall be at the sole
            discretion of the Board whether to apply such cash in payment of dividends
            or
            for some other purpose.  Without limiting the broad discretionary rights of
            the Board provided in the preceding sentence, subject to other obligations
            imposed on the Board by law or contract, the Board shall always be entitled
            to
            apply FFE’s cash in payment of obligations of FFE to third parties or to
            shareholders, and any payment by FFE of cash to shareholders in discharge
            of now
            existing or hereafter arising obligations of FFE shall not be deemed
            to be a
            dividend or other distribution to such shareholder giving rise to a right
            of
            Participant to receive a dividend or distribution hereunder.

           

           

          9. Non
            Transferability. 
            Except as expressly provided herein, the Phantom Shares and/or any rights
            and
            benefits granted in this Agreement may not be transferred, assigned,
            pledged or
            hypothecated in any manner, by operation of law or otherwise, other than
            by will
            or by the laws of descent or distribution, and shall not be subject to
            execution, attachment or similar process.  Subject to such limitation, this
            Agreement shall insure to the benefit of and be binding upon the successors
            and
            assigns of the parties hereto, expressly provided, however, that the
            ability of
            Participant to assign its rights pursuant to this Agreement shall be
            limited
            pursuant to the terms hereof.

           

           

          10. No
            Fiduciary Relationship. 
            The Boards of Directors and the Officers of FFE, Inc. and Industries
            shall have
            no duty to manage or operate in order to maximize the benefits granted
            to
            Participant hereunder, but rather shall have full discretionary power
            to make
            all management and operational decisions based on their determination
            of their
            respective best interest.  This Agreement shall not be construed to create
            a fiduciary relationship between such Boards or the Officers of FFE,
            Inc. and
            Industries and the Participant.

           

           

          11. Governing
            Law. 
            This Agreement shall be governed by and construed in accordance with
            the laws of
            the State of Texas.

           

           

          12. Entire
            Agreement. 
            This Agreement embodies and constitutes the entire understanding between
            the
            parties with respect to the subject matter hereof and all prior or
            contemporaneous agreements, understandings, representations and statements
            (oral
            or written) are merged into this Agreement.  Neither this Agreement nor any
            provision herein may be waived, modified, amended, discharged or terminated
            except by an instrument in writing signed by the party against whom the
            enforcement of such waiver, modification, amendment, discharge of termination
            is
            sought, and then only to the extent set forth in such instrument.

           

           

          13. No
            Employment Guarantee. 
            Nothing in the Plan or the Trust shall be construed as an employment
            contract or
            guarantee of continued employment with the Employer.  The rights of any
            Participant shall only be those as are expressly set forth in this
            Plan.

           

           

          14. Captions. 
            The captions in this Agreement are inserted for convenience of reference
            only
            and in no way define, describe or limit the scope of intent of this Agreement
            or
            any of the provisions hereof.

           

           

          15. Counterpart
            Execution. 
            This Agreement may be executed in multiple counterparts, each of which
            shall be
            deemed an original but all of which together shall constitute but one
            and the
            same instrument.

           

           

          16. Severability. 
            If any provision of this Agreement is held to be illegal, invalid or
            unenforceable under present or future laws, such provisions shall be
            fully
            severable and shall not invalidate the remaining provisions of this Agreement,
            and the remaining provisions of this Agreement shall remain in full force
            and
            effect and shall not be effected by the illegal, invalid or unenforceable
            provision or by its severance from this agreement.

           

           

          17. Taxes. 
            FFE shall be entitled to deduct from amounts payable or items distributable
            hereunder any sums required by federal, state, or local tax law to be
            withheld
            with respect to such payments or distributions.  FFE will advise
            Participant and of the existence of such tax and of the amount that FFE
            is
            required to withhold.  Prior to any distribution of non-cash items FFE will
            advise Participant and if any withholding is required out of such distribution
            and if required of FFE’s calculation and method of calculation of the amount to
            be withheld.

           

           

          IN
            WITNESS WHEREOF, the parties have caused this Agreement to be executed
            as of the
            day and year first set forth above.

           

          
FFE
            TRANSPORTATION SERVICES, INC.

                                                                 
            

          
            	
                    By:

                  	
                    /s/
                      Stoney M. Stubbs, Jr.

                  
	
                    Name:

                  	
                    Stoney
                      M. Stubbs, Jr.

                  
	
                    Title:

                  	
                    Chairman
                      of the Board

                  

          

           

           

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

           

          EXHIBIT
            A

           

          ELIGIBLE
            MANAGERS

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            
              EXHIBIT
                B

               

              INCENTIVE BONUS CALCULATION

              
                	
                        Operating

                        Ratio

                      	 	
                        Group
                          B

                        VP's

                      	 	
                        Group
                          B

                        VP's

                      	 
	 	 	
                        1989

                      	 	
                        Prop.

                        1990

                      	 	
                        1989

                      	 	
                        Prop.

                        1990

                      	 
	
                        100.0+

                      	 	 	
                        -11

                      	
                        %

                      	 	
                        -11

                      	
                        %

                      	 	
                        -9

                      	
                        %

                      	 	
                        -9

                      	
                        %

                      
	
                        99.9-96.1

                      	 	 	
                        0

                      	 	 	
                        0

                      	 	 	
                        0

                      	 	 	
                        0

                      	 
	
                        96.0

                      	 	 	
                        11

                      	 	 	
                        7

                      	 	 	
                        9

                      	 	 	
                        6

                      	 
	
                        95.5

                      	 	 	
                        13

                      	 	 	
                        11

                      	 	 	
                        10

                      	 	 	
                        7

                      	 
	
                        95.0

                      	 	 	
                        14

                      	 	 	
                        13

                      	 	 	
                        11

                      	 	 	
                        9

                      	 
	
                        94.5

                      	 	 	
                        15

                      	 	 	
                        15

                      	 	 	
                        12

                      	 	 	
                        11

                      	 
	
                        94.0

                      	 	 	
                        16

                      	 	 	
                        17

                      	 	 	
                        13

                      	 	 	
                        13

                      	 
	
                        93.5

                      	 	 	
                        17

                      	 	 	
                        19

                      	 	 	
                        14

                      	 	 	
                        15

                      	 
	
                        93.0

                      	 	 	
                        18

                      	 	 	
                        20

                      	 	 	
                        15

                      	 	 	
                        16

                      	 
	
                        92.5

                      	 	 	
                        19

                      	 	 	
                        21

                      	 	 	
                        16

                      	 	 	
                        17

                      	 
	
                        92.0

                      	 	 	
                        20

                      	 	 	
                        23

                      	 	 	
                        17

                      	 	 	
                        18

                      	 
	
                        91.5

                      	 	 	
                        20

                      	 	 	
                        25

                      	 	 	
                        18

                      	 	 	
                        20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]