Document:

Exhibit 10.2

    
      

    

     

    Exhibit
      10.2

    
       

      [Ford
        Logo]

    

     

    
      	
              Peter
                J. Sherry, Jr. 

              Secretary

              313/323-2130

              313/248-8713
                (Fax)

              psherry@ford.com

            	 	
              One
                American Road

              Room
                1134 WHQ

              Dearborn,
                Michigan 48126

               

              
                September
                  13, 2006

              

            

    

     

    

    

    Sir
      John
      Bond

    [Address
      redacted]

     

    

    Dear
      Sir
      John:

    

    This
      letter will confirm our discussions on the terms of your consultancy to Ford
      Motor Company:

    

    
      	 	
              ·

            	
              We
                have agreed that you will be a consultant to Ford Motor Company and
                William Clay Ford, Jr., generally spending the whole of the Tuesday
                and
                the morning of the Wednesday preceding each of our seven regular
                Board of
                Directors meetings in consultation with senior management of Ford
                Motor
                Credit Company and senior finance management of Ford.
                

            

    

    

    
      	 	
              ·

            	
              We
                will compensate you at the rate of $25,000 per day, which amount
                would be
                pro-rated for each Wednesday that you consult with Company management.
                Accordingly, you would receive $37,500 for each Tuesday/Wednesday
                that you
                consult with Company management, or $262,500 per 12 month period.
                Any
                additional consulting and resulting compensation would have to be
                specifically agreed between you and Ford. We will pay you in arrears
                at
                the end of each calendar quarter. Of course, we will also reimburse
                you
                for normal and customary travel and business expenses incurred by
                you in
                providing the consulting services upon submission of appropriate
                documentation. As a member of the Board of Directors of Ford, you
                also
                will continue to receive the fees paid and other benefits provided
                to
                non-employee directors.

            

    

    

    
      	 	
              ·

            	
              We
                will provide you with office, computer and other incidental support
                when
                in Dearborn, Michigan.

            

    

    

    
      	 	
              ·

            	
              Either
                you or Ford can terminate the consulting arrangement at any time,
                in your
                or Ford's sole discretion, in which event Ford will pay you for consulting
                services previously rendered and reimburse you for travel and business
                expenses previously incurred. 

            

    

     

    
      	
            	·	
              The
                effective date of our agreement shall be the date of your concurrence,
                below; however, the Company shall pay you in accordance with this
                agreement for the time you spent consulting with Ford executives
                in
                connection with the July meeting of the Board of
                Directors.

            

    

    

    
      	 	
              ·

            	
              Your
                signature, below, will also confirm your resignation from the Compensation
                Committee and the Nominating and Governance Committee of the
                Company.

            

    

    

    If
      you
      concur in the consulting arrangement as described above, please so indicate
      by
      signing and dating this letter at the space below.

    

    
      	 	 	
              Sincerely,

            
	 	 	 
	 	 	 
	 	 	
              /s/Peter
                J. Sherry, Jr.

            
	 	 	 
	 	 	
              Peter
                J. Sherry, Jr.

            

    

    

    

    Concur:

    

    

    
      	 
/s/Sir
              John Bond	 
	 Sir
              John Bond	 
	 	 	 
	 	 	 
	
              Date:

            	
              September
                13, 2006Exhibit 10-B

    
      

    

    Exhibit
      10-B

    

    FORD
      MOTOR COMPANY

    Executive
      Separation Allowance Plan

    (As
      amended through October 1, 2006)

    

    Section
      1. Introduction.
      This
      Plan has been established for the purpose of providing Leadership Level One
      or
      Two Employees who are hired or rehired prior to January 1, 2004 with an
      Executive Separation Allowance (ESAP) in the event of their separation from
      employment with the Company under certain circumstances. The Plan is an
      expression of the Company's present policy with respect to separation allowances
      for Leadership Level One or Two Employees who meet the eligibility requirements
      set forth below; it is not a part of any contract of employment and no employee
      or other person shall have any legal or other right to any Executive Separation
      Allowance. 

    

    Section
      2. Definitions.
      As used
      in the Plan, the following terms shall have the following meanings,
      respectively:

    

    "Affiliate"
      shall
      mean, as applied with respect to any person or legal entity specified, a person
      or legal entity that directly or indirectly, through one or more intermediaries,
      controls or is controlled by, or is under common control with, the person or
      legal entity specified.

    

    "Company"
      shall
      mean Ford Motor Company and such of the subsidiaries of Ford Motor Company
      as,
      with the consent of Ford Motor Company, shall have adopted this
      Plan.

    

    "Contributory
      Service"
      shall
      mean, without duplication, the years and any fractional year of contributory
      service at retirement, not exceeding one year for any calendar year, of the
      Eligible Leadership Level One or Two Employee under the Ford Motor Company
      General Retirement Plan.

    

    "Eligible
      Leadership Level One or Two Employee"
      shall
      mean a Leadership Level One or Two Employee who meets the eligibility criteria
      set forth in Section 3, or for periods prior to January 1, 2000, shall mean
      an
      Executive Roll Employee who meets the eligibility criteria set forth in Section
      3.

    

    "Eligible
      Surviving Spouse"
      shall
      mean a spouse to whom a Leadership Level One or Two Employee has been married
      at
      least one year at the date of the employee's death.

    

    "Internal
      Revenue Code"
      or
      "Code" shall mean the Internal Revenue Code of 1986, as amended from time to
      time.

    

    "Leadership
      Level One or Two Employee"
      shall
      mean an employee of the Company (but for periods prior to July 1, 1996,
      excluding a Company employee who is an employee of Jaguar Cars, a division
      of
      the Company) who is assigned to the Leadership Level One or Two, or its
      equivalent, as such term is defined in the Employee Relations Administration
      Manual as from time to time constituted.

    

    "Separation
      From Service" shall
      mean termination from Company employment.

    

    "Service"
      shall
      mean an eligible employee's years of service (including fractions of years)
      used
      in determining eligibility for an early retirement benefit under the Ford Motor
      Company General Retirement Plan.

     

    "Specified
      Employee" shall
      mean an employee of the Company who is a Key Employee as defined in Code Section
      416(i) without regard to paragraph 5 thereof. A Specified Employee shall be
      identified as of December 31st
      of each
      calendar year and shall apply to any Specified Employee who shall incur a
      Separation From Service in the 12-month period commencing January 1st
      of the
      immediately succeeding calendar year. This provision is effective for Specified
      Employees who incur a Separation From Service on or after January 1,
      2005.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    "Subsidiary"
      shall
      mean, as applied with respect to any person or legal entity specified, (i)
      a
      person or legal entity a majority of the voting stock of which is owned or
      controlled, directly or indirectly, by the person or legal entity specified
      or
      (ii) any other type of business organization in which the person or legal entity
      specified owns or controls, directly or indirectly, a majority
      interest.

    

    Section
      3. Eligibility.
      Each
      Leadership Level One or Two Employee who is being separated from employment
      with
      the approval of the Company and who:

    

    
      	 	
              (1)

            	
              has
                at least five years service at the Leadership Level One or Two level,
                or
                its equivalent;

            

    

    

    
      	 	
              (2)

            	
              has
                at least ten years of contributory membership under the General Retirement
                Plan;

            

    

    

    
      	 	
              (3)

            	
              is
                at least 55 years of age; and

            

    

    

    
      	 	
              (4)

            	
              retires
                from the Company prior to age 65

            

    

    

    shall
      receive an Executive Separation Allowance as provided herein. The Eligible
      Surviving Spouse of a Leadership Level One or Two Employee who (i) has not
      separated from employment with the Company, (ii) meets the eligibility
      conditions set forth in Subsections (1) through (3) of this Section 3, and
      (iii)
      dies on or after January 1, 1981 shall be eligible to receive the Executive
      Separation Allowance that the Eligible Surviving Spouse of a deceased employee
      would have been eligible to receive if such employee had separated from
      employment with the approval of the Company and retired on the date of the
      employee's death.

    

    The
      eligibility conditions set forth in Subsections (1) and (2) of Section 3 may
      be
      waived by the Executive Chairman except in the case of a Leadership Level One
      or
      Two Employee who has not separated from employment with the
      Company.

    

    Section
      4. Calculation
      of Amount.

    

    A.
      Base
      Monthly Salary.
      For
      purposes of the Plan, the "Base Monthly Salary" of a Leadership Level One or
      Two
      Employee shall be the highest monthly base salary rate of such employee during
      the employee's 12 months of service immediately preceding Separation From
      Service with the Company, prior to giving effect to any salary reduction
      agreement pursuant to an employee benefit plan, as defined in Section 3(3)
      of
      the Employee Retirement Income Security Act of 1974, as amended, (i) to which
      Code Section 125 or Code Section 402(e)(3), applies or (ii) which provides
      for
      the elective deferral of compensation. It shall not include supplemental
      compensation or any other kind of extra or additional compensation.

     

    B.
      Amount
      of Executive Separation Allowance.
      Subject
      to any limitation in other provisions of the Plan, the gross monthly amount
      of
      the Executive Separation Allowance of an Eligible Leadership Level One or Two
      Employee under Section 3 above shall be such employee's Base Monthly Salary
      multiplied by a percentage, not to exceed 60%, equal to the sum of (i) 15%,
      (ii)
      five tenths of one percent (.5%) for each month (or fraction thereof) that
      such
      employee's age at Separation From Service exceeds 55, not to exceed thirty
      percent (30%), and (iii) one percent (1%) for each year of such employee's
      service in excess of 15, prorated for fractions of a year.

    

    The
      gross
      amount for any month shall be reduced by any payments paid or payable for such
      month to the Eligible Leadership Level One or Two Employee, the employee's
      surviving spouse, contingent annuitant, or other beneficiary under the General
      Retirement Plan or any other private retirement plan, other than the
      Supplemental Executive Retirement Plan, to which the Company or its subsidiaries
      shall have contributed.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Section
      5. Payments.
      Executive Separation Allowance payments to an Eligible Leadership Level One
      or
      Two Employee, in the net amount determined in accordance with Section 4B above,
      shall be made monthly from the Company's general funds commencing on the first
      day of the month following the date that is the later of the date on which
      the
      Eligible Leadership Level One or Two Employee 1) reaches at least age 55 with
      10
      years of Contributory Service; or 2) has a Separation From Service. Payments
      to
      an Eligible Leadership Level One or Two Employee shall cease at the end of
      the
      month in which such employee attains age 65 or dies, whichever occurs first.
      In
      the event of death of an Eligible Leadership Level One or Two Employee prior
      to
      such employee attaining age 65, or in the event of death on or after January
      1,
      1981 of a Leadership Level One or Two Employee whose Eligible Surviving Spouse
      meets the eligibility conditions set forth in Section 3 for payments hereunder,
      payments shall be made to such employee's Eligible Surviving Spouse, if any,
      until the death of such spouse or, if earlier, until the end of the month in
      which the Leadership Level One or Two Employee would have attained age
      65.

    

    Anything
      herein contained to the contrary notwithstanding, the right of any Eligible
      Leadership Level One or Two Employee to receive an installment of Executive
      Separation Allowance hereunder for any month shall be payable only
      if:

    

    
      	
            	(i)	
              During
                the entire period from the date of such employee's Separation From
                Service
                to the end of such month, such employee shall have earned out such
                installment by refraining from engaging in any activity that is directly
                or indirectly in competition with any activity of the Company or
                any
                Subsidiary or Affiliate thereof;

            

    

    
      	
            	(ii)	
              If
                a Specified Employee incurs a Separation From Service, payment of
                any
                Executive Separation Allowance benefit accrued or vested after December
                31, 2004 shall not commence (or be paid) earlier than the first day
                of the
                seventh month following the Separation From Service;
                and

            

    

    
      	
            	(iii)	
              The
                payments delayed under this Section shall not bear
                interest.

            

    

    

    In
      the
      event of an Eligible Leadership Level One or Two Employee's nonfulfillment
      of
      the condition set forth in the immediately preceding paragraph, no further
      installment shall be paid to such employee; provided, however, that the
      nonfulfillment of such condition may at any time (whether before, at the time
      of
      or subsequent to termination of the employee's employment) be waived in the
      following manner:

    

    (1)
      with
      respect to any such employee who at any time shall have been a member of the
      Board of Directors, a Vice President, the Treasurer, the Controller or the
      Secretary of the Company, such waiver may be granted by the Compensation
      Committee upon its determination that in its sole judgment there shall have
      not
      been and will not be any substantial adverse effect upon the Company or any
      Subsidiary or Affiliate thereof by reason of the nonfulfillment of such
      condition; and

     

    (2)
      with
      respect to any other such employee, such waiver may be granted by the Annual
      Incentive Compensation Committee (or any committee appointed 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
      herein contained to the contrary notwithstanding, Executive Separation Allowance
      payments shall not be paid to or with respect to any person as to whom it has
      been determined that such person at any time (whether before or subsequent
      to
      termination of the employee's employment) acted in a manner inimical to the
      best
      interests of the Company. Any such determination shall be made by (i) the
      Compensation Committee with respect to any Leadership Level One Employee who
      at
      any time shall have been a member of the Board of Directors, an Executive Vice
      President, a Vice President, the Treasurer, the Controller or the Secretary
      of
      the Company, and (ii) the Annual Incentive Compensation Committee with respect
      to any other Leadership Level One or Two Employee, and shall apply to any
      amounts payable after the date of the applicable Committee's action hereunder,
      regardless of whether the person has commenced receiving Executive Separation
      Allowance. Conduct which constitutes engaging in an activity that is directly
      or
      indirectly in competition with any activity of the Company or any Subsidiary
      or
      Affiliate thereof shall be governed by the four immediately preceding paragraphs
      of this Section
      5
      and
      shall not be subject to any determination under this paragraph.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Any
      Executive Separation Allowance payments resumed after reemployment with the
      Company under Section 7A or employment with a Subsidiary of the Company under
      Section 7B shall be paid on the basis of the percentage of Base Monthly Salary
      applicable at the time of the initial determination under Section
      4B.

    

    Section
      6. Deductions.
      The
      Company may deduct from any payment of Executive Separation Allowance to an
      Eligible Leadership Level One or Two Employee or such employee's Eligible
      Surviving Spouse all amounts owing to it by such employee for any reason, and
      all taxes required by law or government regulation to be deducted or
      withheld.

    

    Section
      7A. Person
      Reemployed by the Company.
      In the
      event an employee who shall have been separated from employment with the Company
      under circumstances that would make the employee eligible to receive an
      Executive Separation Allowance shall be reemployed by the Company before the
      employee shall have received payment of the full amount of the employee's
      Executive Separation Allowance, no further allowance shall be paid during such
      period of reemployment.

    

    Section
      7B. Person
      Employed by a Subsidiary.
      In the
      event an employee who shall have been separated from employment with the Company
      under circumstances that would make the employee eligible to receive an
      Executive Separation Allowance shall be employed by a Subsidiary of the Company
      before the employee shall have received payment of the full amount of the
      employee's Executive Separation Allowance, no further allowance shall be paid
      during such period of employment.

    

    Section
      8. Administration
      and Interpretation.
       Except
      as
      the committees specified in Section 5 and the Executive Chairman is authorized
      to administer the Plan in certain respects, the Group Vice President - Corporate
      Human Resources and Labor Affairs shall have full power and authority on behalf
      of the Company to administer and interpret the Plan. In the event of a change
      in
      a designated officer's title, the officer or officers with functional
      responsibility for executive separation allowance plans shall have the power
      and
      authority to administer and interpret the Plan. All decisions with respect
      to
      the administration and interpretation of the Plan shall be final and shall
      be
      binding upon all persons.

     

    Section
      9. Amendment
      and Termination. The
      Company reserves the right to amend, modify or terminate the Plan at any time
      without notice.

    

    Section
      10. Local
      Payment Authorities. The
      Vice
      President and Treasurer and the Assistant Treasurer (or in the event of a change
      in title, their functional equivalent) may act individually to delegate
      authority to administrative personnel to make benefit payments to Eligible
      Leadership Level One or Two Employees in accordance with Plan
      provisions.

    

    Section
      11. Visteon
      Corporation.
      The
      following shall be applicable to employees of Ford who were transferred to
      Visteon Corporaton on April 1, 2000 ("U.S. Visteon Employees") and who ceased
      active participation in the Plan as of June 30, 2000 after Visteon Corporation
      was spun-off from Ford, June 28, 2000.

    

    
      	
            	(a)	
              Group
                I and Group II Employees.

            

    

    

    
      	 	 	
              For
                purposes of this paragraph, a "Group I Employee" shall mean a U.S.
                Visteon
                Employee who as of July 1, 2000 was eligible for immediate normal
                or
                regular early retirement under the provisions of the GRP as in effect
                on
                July 1, 2000. A "Group II Employee" shall mean a U.S. Visteon Employee
                who
                (i) was not a Group I Employee; (ii) had as of July 1, 2000 a combination
                of age and continuous service that equals or exceeds sixty (60) points
                (partial months disregarded); and (iii) could become eligible for
                normal
                or regular early retirement under the provisions of the GRP as in
                effect
                on July 1, 2000 within the period after July 1, 2000 equal to the
                employee's Ford sevice as of July 1, 2000. A Group I or Group II
                Employee
                shall retain eligibility to receive an Executive Separation
                Allowance

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        
          	
                   

                	
                   

                	
                  
                    and
                      shall receive such benefits as are applicable under the terms
                      of the Plan
                      in effect on the retirement date, based on meeting the minimum
                      Leadership
                      Level required for eligibility for such benefits as of July
                      1, 2000,
                      service as of July 1, 2000, and the Base Monthly Salary as
                      of the
                      retirement date.

                  

                

        

         

      

    

    
      	
               

            	
              (b)

            	
              Group
                III Employees.

            

    

    

    
      	 	 	
              For
                purposes of this paragraph, a "Group III Employee" shall mean a U.S.
                Visteon Employee who participated in the GRP prior to July 1, 2000
                other
                than a Group I or Group II Employee. The Plan shall have no liability
                for
                any Executive Separation Allowance payable to Group III Employees
                who were
                otherwise eligible hereunder with respect to service prior to July
                1, 2000
                on or after July 1, 2000. 

            

    

    

    

    Section
      12. Code
      Section 409A.

    

    With
      respect to benefits accrued or vested after December 31, 2004, the Company
      reserves the right to take such action, on a uniform basis, as the Company
      deems
      necessary or desirable to ensure compliance with Code Section 409A, and
      applicable additional regulatory guidance thereunder, or to achieve the goals
      of
      the Plan without having adverse tax consequences under this Plan for any
      employee or beneficiary.

     

    After
      receipt of Plan benefits accrued or vested after December 31, 2004, the
      obligations of the Company with respect to such benefits shall be satisfied
      and
      no Eligible Leadership Level One or Two Employee, or their Eligible Surviving
      Spouse, shall have any further claims against the Plan or the Company with
      respect to Plan benefits accrued or vested after December 31, 2004.

     

    Section
      13. Claim for Benefits

    

    Denial
      of a Claim. A
      claim
      for benefits under the plan shall be submitted in writing to the plan
      administrator. If a claim for benefits or participation is denied in whole
      or in
      part by the plan administrator, the Eligible Leadership Level One or Two
      Employee will receive written notification within a reasonable period from
      the
      date the claim for benefits or participation is received. Such notice shall
      be
      deemed given upon mailing, full postage prepaid in the United States mail or
      on
      the date sent electronically to the Eligible Leadership Level One or Two
      Employee. If the plan administrator determines that an extensive period of
      time
      for processing is required, written notice shall be furnished to the Eligible
      Leadership Level One or Two Employee as soon as practical.

    

    Review
      of Denial of the Claim. In
      the
      event that the plan administrator denies a claim for benefits or participation,
      the Eligible Leadership Level One or Two Employee may request a review by filing
      a written appeal to the Group Vice President - Corporate Human Resources and
      Labor Affairs, or his or her designee, within sixty (60) days of receipt of
      the
      written notification of denial. The appeal will be considered, and a decision
      shall be rendered as soon as practical. In the event a time extension is needed
      to consider the appeal and render the decision, written notice shall be provided
      to the Eligible Leadership One or Two Employee notifying them of such time
      extension.

    

    Decision
      on Appeal. The
      decision on review of the appeal shall be in writing. Such notice shall be
      deemed given upon mailing, full postage prepaid in the United States mail or
      on
      the date sent electronically to the Eligible Leadership Level One or Two
      Employee. Decisions on the appeal are final and conclusive and are only subject
      to the arbitrary and capricious standard of judicial review.

    

    Limitations
      Period. No
      legal
      action for benefits under the plan may be brought against the plan until after
      the claims and appeal procedures have been exhausted. Legal actions under the
      plan for benefits must be brought no later than two (2) years after the claim
      arises. No other action may be brought against the plan more than six (6) months
      after the claim arises.

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