Document:

Unassociated Document

    
      

    

    Exhibit
10-N-1

    

    Amendment
to the

    Ford
Motor Company

    Annual
Incentive Compensation Plan

    (effective
as of December 31, 2008)

    

    

    The
following sentence shall be added to the end of Section 15(c) of the Ford Motor
Company Annual Incentive Compensation Plan:

    

    

    "Further,
any mandatory deferral made pursuant to this paragraph must designate the time
and form of payment of any Award subject to such mandatory
deferral."Unassociated Document

    
      

    

    Exhibit
10-N-3

    

    

    

    Annual
Incentive Compensation Plan Metrics for 2009

    

    

    On
February 25, 2009, the Compensation Committee of the Board of Directors of the
Company approved the specific performance goals and business criteria to be used
for purposes of determining any future cash awards for 2009 for participants,
including executive officers, under the Company's shareholder-approved Annual
Incentive Compensation Plan (filed as Exhibit 10.2 to the Company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2008).  For most
participants, the performance criteria and weightings to be used for 2009 under
the plan include attaining specified levels of:

    

    
      	
               
      

            	
              ·

            	
              total
      company pre-tax profits* (40%),

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit pre-tax profits (including related financing profits)*
      (15%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company automotive operating-related cash flow*
  (20%),

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit cost performance
(8.33%),

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit market shares (8.33%),
and

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit quality metrics
(8.33%).

            

    

    

    For some
participants, including certain executive officers, whose job responsibilities
encompass multiple business units, the performance criteria to be used for 2009
under the plan include attaining specified levels of:

    

    
      	
               
      

            	
              ·

            	
              total
      company pre-tax profits* (55%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company automotive operating-related cash flow*
  (20%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company cost reductions (8.33%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company market shares (8.33%), and

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company quality metrics (8.33%).

            

    

    

    Based on
business performance results for 2009 against the targeted levels established
for each metric, the Compensation Committee will determine the percentage of the
target award that is earned, which could range between 0% and 200% depending on
actual performance achieved relative to the target levels.  In
addition, individual awards may be increased (within limits set by the
Compensation Committee) or decreased from a formula amount, based on leadership
level or salary grade level, to reward a person's performance.

    

    *
Excludes special itemsUnassociated Document

    
      

    

    Exhibit
10-N-5

    

    

    Performance-Based
Restricted Stock Unit Award Metrics for 2009

    

    

    On
February 25, 2009, the Compensation Committee of the Board of Directors of the
Company approved the specific performance goals and business criteria to be used
for purposes of determining any future performance-based restricted stock unit
final awards for the 2009 performance-year for participants, including executive
officers, under the Company's shareholder-approved 2008 Long-Term Incentive Plan
(filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2008).  For most participants, the performance
criteria and weightings to be used for 2009 under the plan include attaining
specified levels of:

    

    
      	
               
      

            	
              ·

            	
              total
      company pre-tax profits* (40%),

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit pre-tax profits (including related financing profits)*
      (15%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company automotive operating-related cash flow*
  (20%),

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit cost performance
(8.33%),

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit market shares (8.33%),
and

            

    

    

    
      	
               
      

            	
              ·

            	
              relevant
      business unit quality metrics
(8.33%).

            

    

    

    For some
participants, including certain executive officers, whose job responsibilities
encompass multiple business units, the performance criteria to be used for 2009
under the plan include attaining specified levels of:

    

    
      	
               
      

            	
              ·

            	
              total
      company pre-tax profits* (55%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company automotive operating-related cash flow*
  (20%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company cost reductions (8.33%),

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company market shares (8.33%), and

            

    

    

    
      	
               
      

            	
              ·

            	
              total
      company quality metrics (8.33%).

            

    

    

    Based on
business performance results for 2009 against the targeted levels established
for each metric, the Compensation Committee will determine the percentage of the
target award that is earned, which could range between 0% and 100% depending on
actual performance achieved relative to the target levels.  In
addition, individual awards may be increased (within limits set by the
Compensation Committee) or decreased from a formula amount, based on leadership
level or salary grade level, to reward for a person's anticipated future
contribution.

    

    *
Excludes special itemsUnassociated Document

    
      

    

    Exhibit
10-O-3

    

    Terms
and Conditions of Stock Option Agreement (Nonqualified Option)

    2008
Long-Term Incentive Plan

    

    Effective
for Options and/or Stock Appreciation Rights granted on or after May 8,
2008.

    

    Please
refer to Appendix A for Additional Country-Specific Information

    

    
      	
              1.

            	
              The
      Option may not be exercised prior to the date one year from the date of
      the Stock Option Agreement of which these terms and conditions are a part
      (the Agreement). Thereafter, the Option may be exercised in installments
      as follows:

            

    

    

    
      	
               
      

            	
              ·

            	
              (a)
      Beginning on the date one year from the date of the Agreement, the Option
      may be exercised to the extent of 33% of the shares originally covered
      thereby;

            

    

    

    
      	
               
      

            	
              ·

            	
              (b)
      Beginning on the date two years from the date of the Agreement, the Option
      may be exercised to the extent of an additional 33% of the shares
      originally covered thereby;

            

    

    

    
      	
               
      

            	
              ·

            	
              (c)
      Beginning on the date three years from the date of the Agreement, the
      Option may be exercised to the extent of an additional 34% of the shares
      originally covered thereby; and

            

    

    

    
      	
               
      

            	
              ·

            	
              (d)
      To the extent not exercised, installments shall be cumulative and may be
      exercised in whole or in part;

            

    

    

    all
subject to the Agreement and these terms and conditions and any rules and
regulations established by the Committee pursuant to the Plan.

    

    Notwithstanding
the foregoing, if your stock option grant included an incentive stock option
(ISO), the ISO portion of the grant would be maximized within permissible
regulatory limits. This could result in a different number of options vesting on
the first three anniversary dates of the grant under the nonqualified option
(NQO) and/or the ISO portion of the grant than the number indicated by the
schedule above. In any event, the total number of NQOs and ISOs in the grant,
will, as a whole, vest according to the schedule above. Your grant information
(available online via Smith Barney's Benefit Access website - www.benefitaccess.com
or through a Smith Barney phone representative) will reflect the specific number
of ISOs and NQOs vesting on the specific dates.

    

    

    
      	
              2.

            	
              The
      Stock Appreciation Right, if any, granted by the Company to the Optionee
      under the Agreement shall entitle the Optionee to receive, without payment
      to the Company and as the Optionee may elect, either (a) that number of
      shares of Stock determined by dividing (i) the total number of shares of
      Stock subject to the Option (or the portion or portions thereof which the
      Optionee from time to time elects to use for purposes of this clause (a)),
      multiplied by the amount by which the fair market value of a share of
      Stock on the day this right is exercised exceeds the option price set
      forth in the Agreement (such amount being hereinafter referred to as the
      Spread), by (ii) the fair market value of a share of Stock on the exercise
      date; or (b) cash in an amount determined by multiplying (i) the total
      number of shares of Stock subject to the Option (or the portion or
      portions thereof which the Optionee from time to time elects to use for
      purposes of this clause (b)), by (ii) the amount of the Spread; or (c) a
      combination of shares of Stock and cash, in amounts determined as set
      forth in clauses (a) and (b) above; all subject to the terms and
      conditions set forth herein and any rules and regulations established by
      the Committee pursuant to the Plan.

            

    

    

    The right
of the Optionee to exercise any Stock Appreciation Right shall be cancelled if
and to the extent that the Option is exercised. The right of the Optionee to
exercise the Option shall be cancelled if and to the extent that shares covered
by the Option are used to calculate shares or cash received upon exercise of any
Stock Appreciation Right.

    

    Fair
market value shall mean the closing price at which Stock shall have been
reported on the New York Stock Exchange on the date as of which such computation
is to be made or, if no such closing price shall have been reported on such day,
on the next preceding day on which such closing price of Stock shall have been
reported on such Exchange.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If any
fractional share of Stock would otherwise be deliverable to the Optionee upon
exercise of any Stock Appreciation Right, the Optionee shall be paid a cash
amount equal to the same fraction of the fair market value of the Stock on the
date of exercise.

    

    Any Stock
Appreciation Right shall become and remain exercisable by the Optionee only to
the extent that the Option becomes and remains exercisable.

    

    

    

    
      	
              3.

            	
              Except
      as provided in the immediately following two paragraphs, if, prior to the
      date one year from the date of the Agreement, the Optionee's employment
      with the Company shall be terminated by the Company, with or without
      cause, or by the act, death, incapacity or retirement of the Optionee, the
      Optionee's right to exercise the Option and any Stock Appreciation Right
      shall terminate on the date of such termination of employment and all
      rights hereunder and under the Agreement shall
  cease.

            

    

    

    Notwithstanding
the provisions of the next preceding paragraph, if the Optionee's employment
with the Company shall be terminated by reason of retirement, release because of
disability or death, and the Optionee had remained in the employ of the Company
for at least six months following the date of the Agreement, and subject to the
provisions of Article 4 hereof, all the Optionee's rights hereunder and under
the Agreement shall continue in effect or continue to accrue until the date ten
years after the date of the Agreement, subject, in the event of the Optionee's
death during such ten-year period, to the provisions of the sixth paragraph of
this Article and subject to any other limitation contained herein or in the
Agreement on the exercise of the Option or any Stock Appreciation Right in
effect at the date of exercise.

    

    Notwithstanding
anything to the contrary set forth herein or in the Agreement, if the Optionee's
employment with the Company shall be terminated at any time by reason of a sale
or other disposition (including, without limitation, a transfer to a Joint
Venture (as hereinafter defined)) of the division, operation or subsidiary in
which the Optionee was employed or to which the Optionee was assigned, all the
Optionee's rights under the Option and any Stock Appreciation Right granted to
him or her shall become immediately exercisable and continue in effect until the
date five years after the date of such termination (but not later than the date
ten years from the date of grant of the Option), provided the Optionee shall
satisfy both of the following conditions: (a) the Optionee, at the date of such
termination, had remained in the employ of the Company for at least three months
following the grant of the Option and any Stock Appreciation Right, and (b) the
Optionee continues to be or becomes employed in such division, operation or
subsidiary following such sale or other disposition and remains in such employ
until the date of exercise of the Option or any Stock Appreciation Right (unless
the Committee, or any committee appointed by it for the purpose, shall waive
this condition (b)). Upon termination of the Optionee's employment with such
(former) division, operation or subsidiary following such sale or other
disposition, any then existing right of the Optionee to exercise the Option or
any Stock Appreciation Right shall be subject to the following limitations: (i)
if the Optionee's employment is terminated by reason of disability, death or
retirement with the approval of his or her employer, the Optionee's rights shall
continue as provided in the preceding sentence with the same effect as if his or
her employment had not terminated; (ii) if the Optionee's employment is
terminated by reason of discharge or voluntary quit, the Optionee's rights shall
terminate on the date of such termination of employment and all rights under the
Option and any Stock Appreciation Right shall cease; and (iii) if the Optionee's
employment is terminated for any reason other than a reason set forth in the
preceding clauses (i) and (ii), the Optionee shall have the right, within three
months after such termination, to exercise the Option or any Stock Appreciation
Right to the extent that it or any installment thereof shall have accrued at the
date of such termination and shall not have been exercised, subject in the case
of any such termination to the provisions of Article 4 hereof and any other
limitation on the exercise of the Option and any Stock Appreciation Right in
effect at the date of exercise. For purposes of this paragraph, the term Joint
Venture shall mean any joint venture corporation or partnership, or comparable
entity, in which the Company has a substantial equity interest.

    

    If, on or
after the date one year from the date of the Agreement, the Optionee's
employment with the Company shall be terminated for any reason except
retirement, release because of disability, death, release because of a sale or
other disposition of the division, operation or subsidiary in which the Optionee
was employed or to which the Optionee was assigned, discharge, release in the
best interest of the Company or voluntary quit, the Optionee shall have the
right, within three months after such termination, to exercise the Option or any
Stock Appreciation Right to the extent that it or any installment thereof shall
have accrued at the date of such termination of employment and shall not have
been exercised, subject to the provisions of Article 4 hereof and any other
limitation contained herein or in the Agreement on the exercise of the Option or
any Stock Appreciation Right in effect at the date of exercise.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If the
Optionee's employment with the Company shall be terminated at any time by reason
of discharge, release in the best interest of the Company or voluntary quit, the
Optionee's right to exercise the Option or any Stock Appreciation Right shall
terminate on the date of such termination of employment and all rights hereunder
and under the Agreement shall cease.

    

    If the
Optionee shall die within the applicable period specified in the second, third,
or fourth paragraph of this Article, the beneficiary designated pursuant to
Article 7 hereof or, if no such designation is in effect, the executor or
administrator of the estate of the decedent or the person or persons to whom the
Option or any Stock Appreciation Right shall have been validly transferred by
the executor or the administrator pursuant to will or the laws of descent and
distribution shall have the right, within the same period of time as the period
during which the Optionee would have been entitled to exercise the Option or any
Stock Appreciation Right if the Optionee had not died, to exercise the Option or
any Stock Appreciation Right (except that, if the fourth paragraph of this
Article shall apply to the Optionee, the Option or any Stock Appreciation Right
may be exercised only to the extent that it or any installment thereof shall
have accrued at the date of death and shall not have been exercised, and except
that the period of time within which the Option or any Stock Appreciation Right
shall be exercisable following the date of the Optionee's death shall not be
less than one year (unless the Option by its terms expires earlier)), subject to
the provision that neither the Option nor any Stock Appreciation Right shall be
exercised under any circumstances beyond ten years from the date of the
Agreement and to any other limitation on the exercise of the Option or any Stock
Appreciation Right in effect at the date of exercise.

    

    Notwithstanding
anything to the contrary set forth in the Agreement or in these terms and
conditions, neither the Option nor any Stock Appreciation Right shall be
exercised on or after the date ten years from the date of the
Agreement.

    

    

    
      	
              4.

            	
              Anything
      contained herein or in the Agreement to the contrary notwithstanding, the
      right of the Optionee to exercise the Option or any Stock Appreciation
      Right following termination of the Optionee's employment with the Company
      shall remain effective only if, during the entire period from the date of
      the Optionee's termination to the date of such exercise, the Optionee
      shall have earned out such right by (i) making himself or herself
      available, upon request, at reasonable times and upon a reasonable basis,
      to consult with, supply information to and otherwise cooperate with the
      Company or any subsidiary thereof with respect to any matter that shall
      have been handled by him or her or under his or her supervision while he
      or she was in the employ of the Company or of any subsidiary thereof, and
      (ii) refraining from engaging in any activity that is directly or
      indirectly in competition with any activity of the Company or any
      subsidiary thereof.

            

    

    

    In the
event of the Optionee's nonfulfillment of the condition set forth in the
immediately preceding paragraph, the Optionee's right to exercise the Option or
any Stock Appreciation Right shall cease; provided, however, that the
nonfulfillment of such condition may at any time (whether before, at the time of
or subsequent to termination of his or her employment) be waived in the
following manner:

    

    
      	
               
      

            	
              ·

            	
              (1)
      if the Optionee at any time shall have been subject to the reporting
      requirements of Section 16(a) of the Securities Exchange Act of 1934, as
      amended (the Exchange Act) or the liability provisions of Section 16(b) of
      the Exchange Act (any such Optionee being hereinafter called a Section 16
      Person), such waiver may be granted by the Committee upon its
      determination that in its sole judgment there shall not have been and will
      not be any substantial adverse effect upon the Company or any subsidiary
      thereof by reason of the nonfulfillment of such condition;
    and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              ·

            	
              (2)
      if the Optionee shall not at any time have been a Section 16 Person, such
      waiver may be granted by the Committee (or any committee appointed by it
      for the purpose) upon its determination that in its sole judgment there
      shall not have been and will not be any such substantial adverse
      effect.

            

    

    

    Anything
contained herein or in the Agreement to the contrary notwithstanding, the right
of the Optionee to exercise the Option or any Stock Appreciation Right following
termination of the Optionee's employment with the Company shall cease on and as
of the date on which it has been determined by the Committee that the Optionee
at any time (whether before or subsequent to termination of the Optionee's
employment) acted in a manner inimical to the best interests of the Company.
Conduct which constitutes engaging in an activity that is directly or indirectly
in competition with any activity of the Company or any subsidiary thereof shall
be governed by the four immediately preceding paragraphs of this Article and
shall not be subject to any determination under this paragraph.

    

    
      	
              5.

            	
              Payment
      for any shares of Stock purchased upon exercise of the Option shall be
      made in full at the time of exercise. Such payment may be made in cash, by
      wire, by delivery of shares of Stock beneficially owned by the Optionee or
      by a combination of cash and Stock, at the election of the Optionee;
      provided, however, that any shares of Stock so delivered shall have been
      beneficially owned by the Optionee for a period of not less than six
      months (or 12 months if the stock being surrendered was acquired through
      the exercise of an ISO) prior to the date of such exercise. Any shares of
      Stock so delivered shall be valued at their fair market value (determined
      as provided in Article 2 hereof) on the date of such
    exercise.

            

    

    

    The
Optionee, from time to time during the period when the Option and any Stock
Appreciation Right may by their terms be exercised (a) may exercise the Option
in whole or in part by delivering to the Company or its designee (i) a written
notice signed by the Optionee stating the number of shares that the Optionee has
elected to purchase at that time from the Company, and (ii) a check in an
amount, or (in accordance with the preceding paragraph) shares of Stock having a
value, equal to the purchase price of the shares then to be purchased, or a
combination of shares of Stock and cash, or (b) may exercise any Stock
Appreciation Right in whole or in part by delivering to the Company a written
notice signed by the Optionee stating (i) the number of shares covered by the
Option he or she has elected to use to compute the number of shares, and/or (ii)
the number of shares covered by the Option he or she has elected to use to
compute the amount of cash, to be received from the Company pursuant to exercise
of any Stock Appreciation Right. The Committee, if it shall deem it necessary or
desirable for any reason connected with any law or regulation of any
governmental authority relating to the regulation of securities, may require the
Optionee to execute and file with it such evidence as it may deem necessary that
the Optionee is acquiring any shares of Stock for investment and not with a view
to their distribution and, by way of the adoption of rules and regulations or
otherwise, impose conditions as to the time and manner of exercise of any Stock
Appreciation Right by any person or class of persons.

    

    As soon
as practicable after receipt by the Company or its designee of such notice,
check and/or shares of Stock (if the Option is exercised in whole or in part)
and such evidence of intent to acquire for investment as may be required by the
Committee, the Company shall issue the appropriate number of shares in the name
of the Optionee and deliver the certificate therefor to the Optionee and/or
deliver a check payable to the order of the Optionee for the appropriate amount
of cash. The number of shares shall be adjusted appropriately, or other
appropriate arrangements shall be made, for any taxes required to be withheld by
federal, state or local law.

    

    

    
      	
              6.

            	
              As
      a condition of the granting of the Option and any Stock Appreciation
      Right, the Optionee and the Optionee's successors and assigns agree that
      any dispute or disagreement which shall arise under or as a result of the
      Agreement or these terms and conditions shall be determined by the
      Committee in its sole discretion and judgment and that any such
      determination and any interpretation by the Committee of the Agreement or
      of these terms and conditions shall be final and shall be binding and
      conclusive for all purposes.

            

    

    

    

    
      	
              7.

            	
              Unless
      the Committee determines otherwise, neither the Option nor any Stock
      Appreciation Right is transferable by the Optionee otherwise than by will
      or the laws of descent and distribution, and, during the Optionee's
      lifetime, each is exercisable only by the Optionee or the Optionee's
      guardian or legal representative. Once transferred by will or by the laws
      of descent and distribution, neither the Option nor any Stock Appreciation
      Right shall be further transferable. Any transferee of the Option and any
      Stock Appreciation Right shall take the same subject to the terms and
      conditions set forth herein. No such transfer of the Option and any Stock
      Appreciation Right shall be effective to bind the Company unless the
      Company shall have been furnished with written notice thereof and a copy
      of the will and/or such other evidence as the Committee may deem necessary
      to establish the validity of the transfer and the acceptance by the
      transferee or transferees of the terms and conditions set forth herein. No
      assignment or transfer of the Option and any Stock Appreciation Right, or
      of the rights represented thereby, other than as provided in this Article,
      shall vest in the purported assignee or transferee any interest or right
      therein whatsoever.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
anything to the contrary set forth herein, the Optionee may file with the
Company or its designee a written designation of beneficiary or beneficiaries
(subject to such limitations as to the classes and number of beneficiaries and
contingent beneficiaries and such other limitations as the Committee from time
to time may prescribe) to exercise, in the event of the Optionee's death, the
Option or any Stock Appreciation Right subject to the terms and conditions set
forth herein and to receipt by the Company of such evidence as the Committee may
deem necessary to establish the acceptance by the beneficiary or beneficiaries
of the terms and conditions set forth herein. The Optionee shall be deemed to
have designated as beneficiary or beneficiaries the person or persons who
receive the Optionee's life insurance proceeds under the basic Company Life
Insurance Plan unless the Optionee shall have assigned such life insurance or
shall have filed with the Company a written designation of a different
beneficiary or beneficiaries. The Optionee may from time to time revoke or
change any such designation of beneficiary and any designation of beneficiary by
the Optionee shall be controlling over any other disposition, testamentary or
otherwise; provided, however, that if the Committee shall be in doubt as to the
entitlement of any such beneficiary to exercise the Option or any Stock
Appreciation Right, the Committee may determine to recognize only an exercise by
the legal representative of the Optionee, in which case the Company, the
Committee and the members thereof shall not be under any further liability to
anyone.

    

    

    
      	
              8.

            	
              The
      Optionee, a beneficiary designated pursuant to Article 7 hereof or a
      transferee of the Option and any Stock Appreciation Right shall have no
      rights as a stockholder with respect to any share covered by the Option or
      any Stock Appreciation Right until such person shall have become the
      holder of record of such share, and, except as provided in Article 10
      hereof, no adjustment shall be made for dividends (ordinary or
      extraordinary, whether in cash or securities or other property) or
      distributions or other rights in respect of such share for which the
      record date is prior to the date upon which such person shall become the
      holder of record thereof.

            

    

    

    

    
      	
              9.

            	
              The
      existence of the Option or any Stock Appreciation Right shall not affect
      in any way the right or power of the Company or its stockholders to make
      or authorize any adjustments, recapitalizations, reorganizations or other
      changes in the Company's capital structure or its business, or any merger
      or consolidation of the Company, or any issue of bonds, debentures,
      preferred or prior preference stocks ahead of or affecting the Stock or
      the rights thereof, or the dissolution or liquidation of the Company, or
      any sale or transfer of all or any part of its assets or business, or any
      other corporate act or proceedings whether of a similar character or
      otherwise.

            

    

    

    

    
      	
              10.

            	
              The
      shares covered by the Option and any Stock Appreciation Right are shares
      of Stock as presently constituted, but if, and whenever, prior to the
      delivery by the Company of all of the shares of Stock and/or cash
      deliverable upon exercise of the Option or any Stock Appreciation Right,
      the Company shall effect the payment of a stock dividend on Stock payable
      in shares of Stock, a subdivision or combination of the shares of Stock,
      or a reclassification of Stock, the number and price of shares remaining
      under the Option and any Stock Appreciation Right shall be appropriately
      adjusted. Such adjustment shall be made by the Committee, whose
      determination as to what adjustment shall be made, and the extent thereof,
      shall be final and shall be binding and conclusive for all purposes. Any
      such adjustment may provide for the elimination of any fractional share
      which might otherwise become subject to the
  Option.

            

    

    

    

    
      	
              11.

            	
              Except
      as hereinbefore expressly provided, (a) the issue by the Company of shares
      of Stock of any class, or securities convertible into shares of Stock of
      any class, for cash or property or for labor or services, either upon
      direct sale or upon the exercise of rights or warrants to subscribe
      therefore, or upon conversion of shares or obligations of the Company
      convertible into such shares or other securities, or (b) the payment of a
      stock dividend on any other class of the Company's stock, or (c) any
      subdivision or combination of the shares of any other class of the
      Company's stock, or (d) any reclassification of any other class of the
      Company's stock, shall not affect, and no adjustment by reason thereof
      shall be made with respect to, the number or price of shares of Stock
      subject to the Option or any Stock Appreciation
  Right.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              12.

            	
              After
      any merger of one or more corporations into the Company, or after any
      consolidation of the Company and one or more corporations in which the
      Company shall be the surviving corporation, the Optionee shall, at no
      additional cost, be entitled upon any exercise of the Option or any
      exercise of any Stock Appreciation Right for Stock, to receive (subject to
      any required action by stockholders), in lieu of the number of shares as
      to which the Option or any Stock Appreciation Right shall then be so
      exercised, the number and class of shares of stock or other securities to
      which the Optionee would have been entitled pursuant to the terms of the
      agreement of merger or consolidation if at the time of such merger or
      consolidation the Optionee had been a holder of record of a number of
      shares of Stock equal to the number of shares as to which such Option or
      Stock Appreciation Right shall then be so exercised. Comparable rights
      shall accrue to the Optionee in the event of successive mergers or
      consolidations of the character described above or in the event of any
      exercise of any Stock Appreciation Right for cash following any such
      merger or consolidation. Anything contained herein or in the Agreement to
      the contrary notwithstanding, upon the dissolution or liquidation of the
      Company, or upon any merger or consolidation in which the Company is not
      the surviving corporation, the Option and any Stock Appreciation Right
      shall terminate; but if a period of one year from the date of the
      Agreement shall have expired, the Optionee shall have the right,
      immediately prior to such dissolution, liquidation, merger or
      consolidation, to exercise the Option or any Stock Appreciation Right in
      whole or in part to the extent it shall not have been exercised, without
      regard to the installment provisions of Article 1 hereof but subject to
      any other limitation contained herein or in the Agreement on the exercise
      of the Option and any Stock Appreciation Right in effect on the date of
      exercise. In the event of any other event affecting Stock, an appropriate
      adjustment shall be made in the number and price of shares remaining
      under, and other terms and provisions of, the Option and any Stock
      Appreciation Right. The foregoing adjustments and the manner of
      application of the foregoing provisions shall be determined by the
      Committee in its sole discretion, and such determination shall be final
      and shall be binding and conclusive for all purposes. Any such adjustment
      may provide for the elimination of any fractional share which might
      otherwise become subject to the
Option.

            

    

    

    

    
      	
              13.

            	
              Optionee
      acknowledges and agrees that, in order for the Company to perform its
      requirements under the Plan, the Company may process, for an indefinite
      period of time, personal data about Optionee. Such data includes, but is
      not limited to, the information provided in the Option grant materials and
      any changes thereto, and other appropriate personal data about Optionee,
      including information about Optionee's participation in the Plan and
      options exercised under the Plan from time to time. Optionee also hereby
      gives for an indefinite period of time Optionee's explicit consent to the
      Company to collect, use, store and transfer any such personal data for use
      in the United States of America or any other required location. The legal
      persons for whom the personal data is intended include Ford and any of its
      subsidiaries, the outside plan administrator as selected by the Company
      from time to time and any other person that the Company may deem
      appropriate in its administration of the Plan. Optionee has been informed
      of Optionee's right to access and correct Optionee's personal data by
      contacting Optionee's local Human Resources Representative. Optionee has
      been informed of Optionee's right to withdraw at any time Optionee's
      consent to the processing of personal data. Optionee has been informed
      that the provision of personal data is voluntary. Optionee understands
      that the transfer of the information outlined here is important to the
      administration of the Plan. Optionee's consent is given freely and is
      valid as long as it is needed for administration of the Plan or to comply
      with applicable legal requirements. Optionee's failure to consent to the
      Company's collection, use, storage and transfer of such personal data may
      limit Optionee's right to participate in the Plan. For purposes of this
      paragraph, the term "Company" shall be deemed to include Ford Motor
      Company, Optionee's employer, and any other affiliate of Ford Motor
      Company involved in the administration of the
  Plan.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              14.

            	
              Optionee
      acknowledges that the Company is entitled to terminate the Plan
      unilaterally, and Optionee hereby waives any right to receive Plan
      benefits in the event that the Plan is terminated or Optionee's right to
      exercise the Option otherwise terminates under the terms of the Agreement.
      Optionee further acknowledges that the Company's grant of the option to
      Optionee is not an element of the Optionee's compensation and that the
      option is awarded in the Company's discretion. Optionee further
      acknowledges that receipt of the Option does not entitle Optionee to any
      further grants of an Option in the future, and that the Company does not
      guarantee that benefits under the Plan will have a particular value or be
      granted to Optionee in the future.

            

    

    

    

    
      	
              15.

            	
              Notwithstanding
      any of the other provisions of the Agreement or these terms and
      conditions, the Optionee agrees not to exercise the Option or any Stock
      Appreciation Right, and that the Company will not be obligated to issue
      any shares or deliver any cash pursuant to the Agreement, if the exercise
      of the Option or any Stock Appreciation Right or the issuance of such
      shares or delivery of such cash would constitute a violation by the
      Optionee or by the Company of any provisions of any law or regulation of
      any governmental authority. Any determination of the Committee in this
      connection shall be final and shall be binding and conclusive for all
      purposes. The Company shall in no event be obligated to take any
      affirmative action in order to cause the exercise of the Option or any
      Stock Appreciation Right or the issuance of shares or delivery of cash
      pursuant thereto to comply with any law or any regulation of any
      governmental authority.

            

    

    

    

    
      	
              16.

            	
              Every
      notice relating to the Agreement shall be in writing and shall be given by
      registered mail with return receipt requested. All notices to the Company
      shall be addressed to:

            

    

    

    Smith
Barney, Inc.

    Ford
Service Center

    1001 Page
Mill Road

    Bldg. 4,
Suite 101

    Palo
Alto, CA 94304, USA

    Phone
No.:

    877-664-FORD
(3673) (U.S.)

    212-615-7009
(Non-U.S.)

    Fax
No.:  650-494-2561

    

    All
notices by the Company to the Optionee shall be addressed to the current address
of the Optionee as shown on the records of the Company. Either party by notice
to the other may designate a different address to which notices shall be
addressed. Any notice given by the Company to the Optionee at his or her last
designated address shall be effective to bind any other person who shall acquire
rights under the Agreement.

    

    

    
      	
              17.

            	
              Whenever
      the term Optionee is used in any provision of the Agreement or these terms
      and conditions under circumstances such that the provision should
      logically apply to any other person or persons designated as a beneficiary
      pursuant to the provisions of Article 7 hereof, or to whom the Option and
      any Stock Appreciation Right, in accordance with the provisions of Article
      7 hereof, may be transferred, the term Optionee shall be deemed to include
      such person or persons.

            

    

    

    

    
      	
              18.

            	
              The
      Agreement has been made in and it and these terms and conditions shall be
      construed in accordance with the laws of the State of
      Michigan.

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