Document:

TRANSFER OF ASSETS

EFFECTIVE  AS  OF  October  31,  1999

BETWEEN:  CORPORACION  EBANX.COM, S.A., a company incorporated under the laws of
the  Republic  of  Panama,  ("EPAN");  and

BETWEEN:     ECOMM  RELATIONSHIP  TECHNOLOGIES  MANAGEMENT  LIMITED,  a  company
incorporated  under  the  laws  of  Isle  of  Man,  ("EIOM").

WHEREAS  the parties hereby agree and acknowledge that 1000/0 of all operational
assets  of  EIOM,  as  defined  herein  and  as  further defined in Appendix "A"
attached  hereto;

       a)     EIOM's  operations,  including assets and liabilities, and all
              rights and obligations  therein.

are  hereby  transferred  in full to EPAN in consideration for a total amount of
$1.00  U.S.  and  other  consideration  hereby acknowledged as being received in
full.

EXECUTION  IN  COUNTERPART

This  instrument may be signed in counterpart, in as many counterparts as may be
necessary,  each  of  which  shall be deemed to be an original and each of which
shall  constitute  one  and  the  same instrument, and shall bear the date first
written  above.

ACKNOWLEDGED  AND  AGREED  TO  ON  THE  31st  DAY  OF  October  1999,  BY:

CORPORATION  EBANX.COM, S.A.                     ECOMM RELATIONSHIP TECHNOLOGIES
                                                      MANAGEMENT  LIMITED
/s/  Paul  Mari                                      /s/  David  Harris
     Paul  Mari                                           David  Harris,
     President                                            Director

<PAGE>
Transfer  of  Assets

Schedule  "A"

Operational  Assets  and  Liabilities

Assets  and  liabilities of Ecomm Relationship Technologies (TOM) Ltd. contained
under  the  eBanx  business  model and transferred under this Transfer of Assets
consist  of  the  following  as  at  March  1,  2000:

Cash  accounts  on  hand                  354,617.48
Accounts  Receivable                      385,947.80
Prepaid  Expenses                          40,998.97
Security  Deposits                        477,874.03
Due  from  Related  Parties               312,171.88
Computer  Equipment  (NBV)                330,878.10
Furniture  and  Fixtures  (NBV)            70,705.49
Office  Equipment  (NBV)                   49,063.85
Software  (NBV)                           278,782.68
Leasehold  Improvements  (NBV)             51,575.63

Customer  Deposits                        706,137.28
Obligations  under  Capital  Leases       178,443.85
Merchant  Deposits                        478,209.83Exhibit 4.A

                        SAVINGS AND STOCK INVESTMENT PLAN
                             FOR SALARIED EMPLOYEES

                     (As amended effective January 1, 1997)

                                                1-26-2000
                                                Including Amendments through
                                                12-4-99 and
                                                12-21-99

                                                                           1
<PAGE>

                        SAVINGS AND STOCK INVESTMENT PLAN
                             FOR SALARIED EMPLOYEES

                     (As amended effective January 1, 1997)

                               Table of Contents
                               -----------------
ARTICLE                                                                   PAGE
-------                                                                   ----
I.              Definitions                                               I-1-6
II.             Eligibility                                               II-1
                2.1  Eligibility Date                                     II-1
                2.2  Participation                                        II-1
                     a  After-Tax and Pre-Tax Contributions               II-1
                     b. Rollover Contributions                            II-1
                2.3  Service Included in Connection with
                     Certain Transactions                                 II-1
                2.4  Certain Leaves of Absence                            II-1

III.            Contributions                                             III-1
                3.1  Types of Contributions                               III-1
                     a.  After-Tax Contributions                          III-1
                     b.  Pre-Tax Contributions                            III-2
                     c.  Company Matching Contributions                   III-3
                     d.  Rollover Contributions                           III-3
                     e.  Direct Transfer of Assets from Another
                         Qualified Plan                                   III-3
                3.2  Transfer of Assets from Savings Plan of a Subsidiary
                     by Which Participant Was Formerly Employed           III-3
                3.3  Contributions Following Qualified Military Service   III-4
                3.4  Limitations on Contributions                         III-4
                     a.  Definitions                                      III-4
                     b.  Limitation on Compensation Taken Into Account    III-5
                     c.  Annual Limit on Pre-Tax Contributions            III-5
                     d.  Limitations on Contributions Applicable to
                         Highly Compensated Employees                     III-6
                     e.  Limitations on Contributions under Section 415
                         of the Internal Revenue Code                     III-7
                         1. Limitation                                    III-7
                         2. Annual Addition                               III-7
                         3. Limitation Year                               III-8
                         4. Compensation                                  III-8
                         5. Order of Application of Limitations           III-8
                         6. Participants in Plans of Subsidiaries or
                            Affiliated Employer                           III-9
                         7. Combined Limitation                           III-9
                3.5  Return of Contributions in Excess of Limitations     III-10
                3.6  Delivery of Contribution to Trustee                  III-11
                3.7  Participant's Rights Not Transferable                III-11

IV.             Investment Elections                                      IV-1

                                                                              2
<PAGE>

                4.1  Participant's Election As to Investment of Funds     IV-1
                4.2  Transfer of Assets to Other Investment Elections     IV-2

                                   (i)
<PAGE>

                                                                           PAGE
                                                                           ----
V.              Vesting and Forfeiture of Assets Attributable to Company
                Matching Contributions                                     V-1
                5.1  Vesting                                               V-1
                     a.  Pre-Tax Contributions and After-Tax Contributions V-1
                     b.  Company Matching Contributions                    V-1
                     c.  Assets Transferred from Savings Plan of a
                         Subsidiary                                        V-1
                     d.  Matching Contributions Attributable to PRIMUS
                         Automotive Financial Services, Inc.               V-2

                5.2  Forfeiture                                            V-2
                     a.  Termination of Employment                         V-2
                     b.  Withdrawal of Assets                              V-2

VI.             Loans to Participants                                     VI-1

VII.            Withdrawals, Distributions and Transfers                   VII-1
                7.1  Withdrawal by Participants of Assets Prior
                     to Termination of Employment                          VII-1
                     a.  Pre-Tax Contributions                             VII-1
                     b.  After-Tax Contributions                           VII-1
                     c.  Company Matching Contributions                    VII-1
                     d.  Systemic Withdrawals of Pre-Tax Contributions,
                         After Tax Contributions and Company Matching
                         Contributions After Attainment of Age 59-l/2      VII-2
                     e.  Pre-Tax Contributions, After-Tax Contributions
                         and Company Matching Contributions After
                         Attainment of age 70-l/2                          VII-2
                     f.  Assets Attributable to a Rollover into PRIMUS
                         Automotive Financial Services, Inc. Prime Account VII-2
                7.2  Withdrawal by Participant of Assets at or After
                     Termination of Employment                             VII-2
                     a.  General                                           VII-2
                     b.  Ordinary Withdrawals                              VII-2
                     c.  Systematic Withdrawals                            VII-2
                     d.  Withdrawals Over Life Expectancy                  VII-3
                7.3  Mandatory Distributions                               VII-3
                     a.  General                                           VII-3
                     b.  Termination of Employment                         VII-3
                     c.  Attainment of Age 70-1/2 by an Employee Who
                         Has Not Terminated Employment                     VII-4
                     d.  Dividends on Stock in the Ford Stock Fund
                         and Associates Stock Fund                         VII-5
                     e.  Death of a Participant                            VII-5
                7.4  Conditions Applicable to Withdrawals and
                     Distributions                                         VII-6
                     a.  Effective Date of Withdrawal                      VII-6
                     b.  Assets Delivered                                  VII-6
                     c.  Distribution and Delivery                         VII-6

<PAGE>

                     d.  Form of Distribution from Ford Stock Fund and
                         Associates Stock Fund                             VII-7
                         1.  Whole Shares                                  VII-7
                         2.  Fractional Interests                          VII-7

                                      (ii)
                                                                         PAGE
                                                                         ----
                     e.  Forfeiture                                      VII-7
                     f.  Redeposits                                      VII-7
                     g.  Direct Rollovers                                VII-8
                     h.  Reduction for Loans                             VII-9
                     i.  Assets Held for Benefit of Alternate Payee      VII-9
                     j.  Amounts payable to Incompetents or Minors       VII-9
                     k.  Forfeiture Upon Inability to Locate or Identify
                         Participant or Beneficiary                      VII-9
                     l.  Termination of Employment                       VII-10

                7.5  Transfer of Assets to Savings Plan of a Subsidiary
                     by Which Participant is Employed                    VII-10

VIII.           Investment Options                                       VIII-1
                8.1  Ford Stock Fund                                     VIII-1
                     a.  Investments                                     VIII-1
                     b.  Ford Stock Fund Units                           VIII-1
                     c.  Ford Stock Fund Unit Prices                     VIII-1
                     d.  Distribution and Withdrawal From Ford Stock
                         Fund                                            VIII-2
                     e.  Registered Name                                 VIII-3
                     f.  No Commission                                   VIII-3
                8.2  Associates Stock Fund                               VIII-3
                     a.  Investments                                     VIII-3
                     b.  Associates Stock Fund Units                     VIII-3
                     c.  Associates Stock Fund Unit Prices               VIII-4
                     d.  Distribution and Withdrawal from Associates
                         Stock Fund                                      VIII-5
                     e.  Registered Name                                 VIII-5
                     f.  Cessation of Associates Stock Fund              VIII-5
                8.3  Nondisclosure Requirements                          VIII-5
                8.4  Common Stock Fund                                   VIII-5
                     a.  Investments                                     VIII-5
                     b.  Common Stock Fund Units                         VIII-6
                     c.  Common Stock Fund Unit Prices                   VIII-6
                     d.  Distribution and Withdrawal from Company
                         Stock Fund                                      VIII-7
                     e.  Voting Stock                                    VIII-7
                     f.  Registered Name                                 VIII-8
                8.5  Bond Fund                                           VIII-8
                     a.  Investments                                     VIII-8
                     b.  Bond Fund Units                                 VIII-8

<PAGE>

                     c.  Bond Fund Unit Prices                           VIII-8
                     d.  Distribution and Withdrawal from Bond Fund      VIII-9
                     e.  Registered Name                                 VIII-9
                8.6  Interest Income Fund                                VIII-9
                     a.  Investments                                     VIII-9
                     b.  Crediting of Interest                           VIII-10
                     c.  Reduction in Fund Value                         VIII-11
                     d.  Distribution from Fund and Withdrawals from
                         Interest Income Fund                            VIII-11
                     e.  Interest Income Fund Value                      VIII-11
                     f.  Registered Name                                 VIII-11
                8.7  Income Fund                                         VIII-12
                     a.  Subaccounts                                     VIII-12
                                          (iii)
                                                                         PAGE
                                                                         ----
                     b.  Creating Accounts                               VIII-12
                     c.  Reduction in Fund Value                         VIII-12
                     d.  Distributions and Withdrawals from Income Fund  VIII-12
                     e.  Income Fund Contracts                           VIII-12
                8.8  Mutual Funds                                        VIII-12
                8.9  Investment of Dividends, Interest, Etc.             VIII-12

IX.             Trustee                                                  IX-1
                9.1  Appointment of Trustee                              IX-1
                9.2  Purchases of Securities by the Trustee              IX-1
                9.3  Voting of Company Stock and Associates Stock        IX-2

X.              Application of Forfeited Company Matching Contributions  X-1

XI.             Operation and Administration                             XI-1
                11.1 Named Fiduciary                                     XI-1
                11.2 Power of Company Officers and Designees             XI-1
                     a.  Appointment and Renewal of Trustees and
                         Investment Advisors, Plan Amendments, and
                         Suspension of Plan                              XI-1
                     b.  Trust Agreements, Investment Advisor
                         Agreements, Etc.                                XI-1
                     c.  Appointment of Administration Committee,
                         Determinations of Service in Connection
                         with Certain Corporate Transactions, and
                         Allocations of Responsibility                   XI-1
                     d.  Company Action and Title Capacities             XI-2
                11.3 Administration Committee                            XI-2
                     a.  Appointment of Administration Committee         XI-2
                     b.  Powers of Administration Committee              XI-2
                11.4 Investment Process Committee                        XI-2
                11.5 Indemnification                                     XI-3
                11.6 Payment of Expenses                                 XI-4
                11.7 Records                                             XI-4
                11.8 Participants' Statements, Notices, Etc.             XI-4

<PAGE>

                     a.  Participants' Quarterly Statements              XI-4
                     b.  Notices, Etc.                                   XI-5
                11.9 Governing Law                                       XI-5

XII.            Termination, Suspension and Modification                 XII-1
                12.1 General                                             XII-1
                12.2 Scope of Action                                     XII-1
                12.3 Effect of Termination                               XII-1
                12.4 Retroactive Amendment                               XII-2
                12.5 Limitations of Effects of Actions                   XII-2
                12.6 Special Rule for Mergers, Consolidations and
                     Asset Transfers                                     XII-2

XIII.           Top-Heavy Rules                                          XIII-1
                13.1 Definitions                                         XIII-1
                13.2 Minimum Allocation                                  XIII-3
                13.3 Nonforfeitability                                   XIII-3
                13.4 Compensation Limitation                             XIII-3

                                        (iv)

                                                                         PAGE
                                                                         ----
                13.5  Vesting                                            XIII-3
                13.6  Combined Limitation                                XIII-4

XIV.            Designation of Beneficiaries                             XIV-1
                14.l General                                             XIV-1
                14.2 Married Participants                                XIV-1

XV.             Employee Stock Ownership Plan                            XV-1
                15.1 Description of ESOP                                 XV-1
                15.2 ESOP Trustee                                        XV-1
                15.3 Borrowing on Behalf of ESOP                         XV-1
                15.4 Suspense Account                                    XV-1
                15.5 Application of Dividends                            XV-1
                15.6 Release of Shares from Suspense Account             XV-2
                15.7 Limitation on Contributions for Highly
                     Compensated Employees                               XV-2
                15.8 Administration Committee Authority                  XV-3
                15.9 Sale of Company Stock in Suspense Account           XV-3

XVI.            Conditions on Participation of Subsidiaries of
                the Company                                              XVI-1

APPENDIX A      Additional Mutual Funds
APPENDIX B      Participating Employers

<PAGE>

                                         (v)

<PAGE>

                               FORD MOTOR COMPANY
                        SAVINGS AND STOCK INVESTMENT PLAN
                             FOR SALARIED EMPLOYEES
               (As amended and restated effective January 1, 1997)

             This Plan has been established by the Company to encourage and
             facilitate systematic savings and investment by Eligible
             Employees and to provide them with an opportunity to become
             stockholders of the Company.

             That portion of the Plan described in Article XV is intended to
             be an "Employee Stock Ownership Plan," as that term is defined
             by the Code and, as such, is designed to invest primarily in
             Company Stock.

             This Plan document is an amendment and restatement of the Plan
             effective January 1, 1997, and incorporates certain amendments
             made subsequent to such date and prior to the approval hereof, as
             well as amendments reflected for the first time herein.
             Notwithstanding the effective date of this amendment and
             restatement, the provisions of this Plan as reflected in the
             amendments dated February 26, 1998, and March 4, 1998, shall be
             deemed effective throughout the period from February 26, 1998,
             through May 1, 1998, even though not set forth herein.

<PAGE>

                                   ARTICLE I

                                  Definitions
                                  -----------

As hereinafter used:

     1.1  "Account"  shall  mean,  as  appropriate,  any one of a  Participant's
          Pre-Tax Contribution Account,  After-Tax Contribution Account, Company
          Matching Contribution Account, or any combination of such accounts.

     1.2  "Administration  Committee"  shall mean the  committee  created by the
          Company pursuant to the provisions of Section 11.3 hereof.

     1.3  "Affiliated   Employer"   shall   mean  the   Company,   Ford   Global
          Technologies,  Inc., AAI Employee Services Company,  L.L.C., and, when
          approved by the  Committee as an  Affiliated  Employer,  (a) any other
          corporation  not less than a majority of the voting  stock of which is
          owned,  directly or indirectly,  by the Company and (b) any other type
          of business  organization in or of which the Company owns or controls,
          directly or indirectly, a majority interest. Any entity that was prior
          to June 1, 1997,  an  Affiliated  Employer  within the meaning of this
          Plan prior to the amendments  effective January 1, 1997, and reflected
          in this document,  shall continue to be an Affiliated  Employer upon a
          change in form of business  association  from  corporation  to limited
          liability company.

     1.4  "After-Tax   Contributions"  shall  mean  amounts  contributed  by  an
          Employee  to the Plan  from the  Employee's  Salary,  as  provided  in
          Section 3.1(a) hereof.

     1.5  "After-Tax   Contributions   Account"  shall  mean  an  Account  of  a
          Participant   under   the  Plan  to  which  are   credited   After-Tax
          Contributions made by such Employee and Earnings thereon.

     1.6  "Associates  Stock"  shall  mean Class A Company  Stock of  Associates
          First Capital Corporation.

     1.7  "Associates  Stock  Fund"  shall  mean that  portion of the Trust Fund
          consisting  of  investments  made by the  Trustee in  accordance  with
          Section 8.2 hereof.

     1.8  "Associates   Stock  Fund   Units"   shall  mean  the   measure  of  a
          Participant's  interest in the  Associates  Stock Fund as described in
          Section 8.2 hereof.

     1.9  "Bond Fund" shall mean that  portion of the Trust Fund  consisting  of
          investments made by the Trustee in accordance with Section 8.5 hereof.

<PAGE>

     1.10 "Bond Fund Units" shall mean the measure of a  Participant's  interest
          in the Bond Fund as described in Section 8.5 hereof.

     1.11 "Cash Value of Assets"  shall mean the value of the assets,  expressed
          in dollars,  in a Participant's  Account under any investment election
          under the Plan or the total thereof,  as the case may be, at the close
          of business on the date such cash value is to be determined.
                                      I-1
     1.12 "Code" shall mean the Internal Revenue Code of 1986, as amended.

     1.13 "Common  Stock  Fund"  shall  mean  that  portion  of the  Trust  Fund
          consisting  of  investments  made by the  Trustee in  accordance  with
          Section 8.4 hereof and related cash.

     1.14 "Common  Stock Fund Units"  shall mean the measure of a  Participant's
          interest in the Common Stock Fund as described in Section 8.4 hereof.

     1.15 "Company" shall mean Ford Motor Company.

     1.16 "Company Matching Contributions" shall mean amounts contributed by the
          Company to the Trust Fund, as provided in Subsection 3.1(c) hereof.

     1.17 "Company  Matching  Contributions  Account" shall mean an Account of a
          Participant to which is credited  Company  Matching  Contributions  in
          accordance with Section 3.1(c).

     1.18 "Company Stock" shall mean Company Stock of the Company.

     1.19 "Current Market Value" shall mean, with reference to Company Stock and
          Associates  Stock,  the  closing  market  price on the New York  Stock
          Exchange  on the day in  question  or,  if no sales  were made on that
          date,  the closing  market  price on the next  preceding  day on which
          sales were made.

     1.20 "Earnings,"  with  reference  to  After-Tax   Contributions,   Company
          Matching Contributions or Pre-Tax  Contributions,  as the case may be,
          shall mean earnings resulting from the investment and any reinvestment
          of such  contributions  and any  increment  thereof and shall  include
          interest, dividends and other distributions on such investments.

     1.21 "Eligible  Employee"  shall  mean  each  Employee  of a  Participating
          Employer  who has  satisfied  the  service and other  requirements  of
          Article II, except that the term "Eligible Employee" shall not include
          any Employee who

          1.   is  included  in a unit  of  Employees  covered  by a  negotiated
               collective  bargaining  agreement  which  does  not  provide  for
               participation  in the Plan,  except  that,  upon  approval of the
               Company, the foregoing provisions of this clause shall not affect
               the eligibility of such Employee to make After-Tax  Contributions

<PAGE>

               or to have  Pre-Tax  Contributions  made  under  the Plan if such
               Participating  Employer  shall have  requested  and received from
               such labor  organization  a waiver,  in terms  acceptable to such
               Participating  Employer,  of all rights of and claims of right by
               such labor  organization to bargain  collectively with respect to
               the  Plan or any  substantially  similar  plan or  program  or to
               compel such Participating  Employer to do so, but only so long as
               such waiver shall remain in effect, or

                                       I-2

          2.   is a leased employee. The term "leased employee" means any person
               who is not an employee who provides services to the Company if:

               (i)  such services are provided pursuant to an agreement between
                    the Company and any leasing organization;

               (ii) such person has performed services for the Company
                    on a substantially full-time basis for at least one year;
                    and

               (iii)such services are performed under the primary direction or
                    control by the Company.

          An individual who has become an Eligible Employee shall cease to be
          an Eligible Employee upon ceasing to be an Employee and upon
          becoming an individual described in subparagraphs 1 or 2 of this
          Section 1.21.

     1.22 "Employee" shall mean each person who is employed on a salaried basis
          by a Participating Employer or by an Affiliated Employer and is
          enrolled on the active employment rolls of such Participating
          Employer, or of such Affiliated Employer, maintained in the United
          States, including without limitation any such person who also is an
          officer or director of a Participating Employer or of an Affiliated
          Employer; provided that the term "Employee," as defined above, shall
          not include any International Service Employee on Effective Position
          in Range who is on the Company's U.S. operations active employment
          rolls for a limited purpose, for a period limited in advance, or for
          a period that is not expected to continue indefinitely.

     1.23 "ERISA" shall mean the Employee Retirement Income Security Act of
          1974, as amended.

     1.24 "Flexible Benefits Plan" shall mean the Company's cafeteria plan
          under Section 125 of the Code for Salaried Employees.

<PAGE>

     1.25 "Ford Stock Fund" shall mean that portion of the Trust Fund consisting
          of  investments  made by the Trustee in  accordance  with  Section 8.1
          hereof.

     1.26 "Ford  Stock Fund  Units"  shall mean the  measure of a  Participant's
          interest in the Ford Stock Fund as described in Section 8.1 hereof.

     1.27 "Income Fund" shall,  through June 30, 1998,  mean that portion of the
          Trust Fund consisting of investments made by the Trustee in accordance
          with Section 8.7 hereof.

     1.28 Income Fund  Contract"  shall mean an  arrangement  under which (a) an
          Income  Fund  Manager  receives  amounts of cash from the  Trustee and
          invests such amounts  primarily in such fixed income securities as may
          be selected by such Income  Fund  Manager in its  discretion  with the
          objective  of  conservation  of  principal  and the  realization  of a
          reasonable rate of return  consistent  therewith,  and (b) such Income
          Fund  Manager  pays to the  Trustee  such  amounts  of  principal  and
          accumulated  earnings  and  gains  as  are  to  be  distributed  to or
          transferred or withdrawn by Participants pursuant to the Plan and such
          other  amounts  as to which  the  Trustee  may be  entitled  under the
          arrangement.
                                      I-3
     1.29 "Income  Fund  Manager"  shall  mean an  insurance  company  or  other
          organization  which has entered into an Income Fund  Contract with the
          Company pursuant to Section 8.7 hereof.

     1.30 "Interest  Income  Fund"  shall  mean that  portion  of the Trust Fund
          consisting  of  investments  made by the  Trustee in  accordance  with
          Section 8.6 hereof and related cash.

     1.31 "Interest  Income  Fund  Advisor"  shall  mean one or more  persons or
          companies,  corporations,  or  other  organizations  appointed  by the
          Company to provide  investment  advice to the Trustee  concerning  the
          Interest Income Fund. The Trustee may be designated an Interest Income
          Fund Advisor by the Company.

     1.32 "Investment Process Committee" shall mean the committee created by the
          Company pursuant to the provisions of Section 11.4 hereof.

     1.33 "Participant"  shall mean and  include (a) an  Eligible  Employee  who
          shall have elected to  participate  in the Plan and, in the case of an
          Employee of a Participating  Employer,  shall have completed a payroll
          deduction   authorization  or  a  Salary   Reduction   Agreement  then
          outstanding  under the  Plan,  or,  in the case of an  Employee  of an
          Affiliated  Employer,  shall have filed an election  then  outstanding
          under  the Plan to make  After-Tax  Contributions  or to have  Pre-Tax
          Contributions made under the Plan by such method as the Administration
          Committee may have  designated,  and (b) a person who has assets in an
          Account under the Plan.

<PAGE>

     1.34 "Participating  Employer"  shall mean and  include the  Company,  Ford
          Global Technologies,  Inc., AAI Employee Services Company, L.L.C., and
          (a) any  domestic  corporation  not less than a majority of the voting
          stock of which is owned,  directly or  indirectly,  by the Company and
          (b) any other type of domestic  business  organization  in or of which
          the  Company  owns or  controls,  directly or  indirectly,  a majority
          interest,  and,  in the  case of both  (a) and (b),  that  shall  have
          elected to  participate  in the Plan with the consent of the  Company.
          Any entity that was prior to June 1, 1997,  a  Participating  Employer
          within  the  meaning of this Plan  prior to the  amendments  effective
          January 1, 1997, and reflected in this document,  shall continue to be
          a   Participating   Employer   upon  a  change  in  form  of  business
          organization from corporation to limited liability company.

     1.35 "Performance  Bonus Plan" shall mean,  effective  January 1, 2000, the
          Company's Performance Bonus Plan for Salaried Employees.

     1.36 "Plan" shall mean this Savings and Stock  Investment Plan for Salaried
          Employees of Ford Motor Company.

     1.37 "Plan  Year"  shall mean prior to the Plan Year  beginning  January 1,
          1998, a calendar year.  For the Plan Year  beginning  January 1, 1998,
          the Plan Year shall be a period from January 1, 1998, through December
          30,  1998.  Thereafter,  the Plan Year shall be the twelve  (12) month
          period  beginning  December  31 and ending the  immediately  following
          December 30.
                                      I-4

     1.38 "Pre-Tax  Contributions" shall mean amounts contributed by the Company
          to the Plan that have been allocated on behalf of an Employee pursuant
          to a Salary  Reduction  Agreement,  as provided in  Subsection  3.1(b)
          hereof,  or pursuant to an election  with  respect to amounts from the
          Performance  Bonus  Plan  for  Salaried  Employees,  the  Ford  Credit
          Rewarding Performance Management Incentive Plan (for Employees who are
          not bonus  eligible),  or FCA Dollars or Bonus Flex Dollars  under the
          Flexible Benefits Plan of the Company.

     1.39 "Pre-Tax Contributions Account" shall mean an Account of a Participant
          under the Plan to which are credited  Pre-Tax  Contributions on behalf
          of such Employee and Earnings thereon.

     1.40 "Retirement Plan" means the General  Retirement Plan of the Company at
          the time in effect or any other pension or retirement  plan or program
          of a Participating Employer or of an Affiliated Employer.

     1.41 "Retirement  pursuant to the provisions of any Retirement  Plan" means
          retirement at or after normal  retirement  age, or early or disability
          retirement  prior to normal  retirement,  or termination of employment

<PAGE>

          after  becoming  eligible for  retirement  under the provisions of any
          Retirement Plan.

     1.42 "Salary"  shall mean the actual  base salary to which an employee of a
          Participating  Employer  is  entitled  prior to  giving  effect to any
          Salary Reduction Agreement, except that "Salary" shall not include any
          amount  subject to a Salary  Reduction  Agreement  to the extent  such
          amount cannot be contributed  to the  Employee's  Account as a Pre-Tax
          Contribution  because  of the  applicable  limitations  set  forth  in
          Section  3.4  hereof.  In the  case of an  employee  of an  Affiliated
          Employer who is eligible to make After-Tax  Contributions to the Plan,
          as provided in Section 2.4 hereof,  "Salary" shall mean the employee's
          last such salary at the Participating Employer from which he or she is
          on leave of  absence.  "Salary"  shall not  include  any  supplemental
          compensation,  pension,  retirement or salaried  income  security plan
          payment,  retainer,   commission,  fee,  overtime  or  shift  premium,
          cost-of-living allowance, or any other special remuneration.

     1.43 "Salary  Reduction  Agreement"  shall  mean an  agreement  between  an
          Employee and the Participating  Employer to have the Employee's Salary
          reduced by an amount  specified  by the Employee and to have an amount
          equal to the Salary reduction allocated on behalf of the Employee from
          contributions made by the Participating Employer to the Plan, pursuant
          to section 401(k) of the Code and Subsection 3.l(b) hereof,  provided,
          however,  that such amount  shall be reduced as may be  determined  as
          provided in Section 3.4 hereof.

     1.44 "Subsidiary"  shall mean a corporation or other business  organization
          that  either  is or with the  appropriate  approval  could  become  an
          Affiliated Employer.

     1.45 "Trustee" shall mean the trustee or trustees  appointed by the Company
          pursuant to the provisions of Section 9.1 hereof.

                                          I-5

     1.46 "Trust Agreement" shall mean the agreement or agreements  establishing
          the Trust Fund and appointing the Trustee.

     1.47 Trust  Fund" shall mean the assets of the Plan held by the Trustee for
          the benefit of the Participants.

          The following terms have the meanings assigned in the Sections,
          Subsections and Paragraphs specified:

<PAGE>

          "Additional Mutual Funds" ... Section 4.1.

          "After-Tax Contribution Percentage" ... Section 3.4(a).

          "Annual Addition" ... Section 3.4(e)(2).

          "Average After-Tax Contribution Percentage" ... Section 3.4(a).

          "Average Pre-Tax Contribution Percentage" ... Section 3.4(a).

          "Compensation" ... Sections 3.4(a), 3.4(b), and 3.4(e)(4).

          "Highly Compensated Employee" ... Section 3.4(a).

          "Leased employee" ... Section 1.21(2).

          "Limitation year" ... Section 3.4(e)(3).

          "Pre-Tax Contribution Percentage" ... Section 3.4(a).

                                            I-6

<PAGE>

                                   ARTICLE II

                                   Eligibility
                                   -----------

     2.1 Eligibility Date. Except as hereinafter provided,  effective January 1,
2000,  or as  soon  as  practicable  thereafter,  each  Eligible  Employee  of a
Partici-pating  Employer  shall  be  eligible  to  participate  in,  and to make
After-Tax  Contributions and to have Pre-Tax  Contributions made under, the Plan
as of the first day of the second  calendar  month  immediately  following  such
Employee's  original  date of hire.  An  Employee  who ceases to be an  Eligible
Employee  shall  not be  eligible  to make  After-Tax  Contributions  or to have
Pre-Tax  Contributions  made under the Plan as long as such individual is not an
Eligible Employee.

     2.2 Participation.

     a.   After-Tax and Pre-Tax Contributions. An Eligible Employee may elect to
          participate  in  the  Plan  as of  the  first  payday  following  such
          Employee's  eligibility  date with respect to After-Tax  Contributions
          and  Pre-Tax  Contributions  by  delivering  a notice of  election  to
          participate  in such form and in such  manner  and at such time as the
          Administration Committee shall specify.

     b.   Rollover  Contributions.  A  newly-hired  Employee of a  Participating
          Employer who could be an Eligible Employee except that such individual
          has not satisfied the requirements of Section 2.1 hereof, may elect to
          participate in the Plan prior to the date on which such Employee would
          otherwise  become  eligible to participate in the Plan for the limited
          purpose of making a rollover  contribution  to the Plan as hereinafter
          provided.

     2.3 Service Included in Connection With Certain  Transactions.  The Company
may  in  its  discretion  determine,  in  the  event  of  the  acquisition  by a
Participating Employer or Affiliated Employer (by purchase, merger or otherwise)
of all or part of the assets of another business organization,  and in the event
of the employment by a Participating Employer or Affiliated Employer of all or a
substantial number of individuals employed in the operations of an employer that
is not a Participating  Employer or Affiliated  Employer,  that the service of a
person as an employee of such other business  organization  shall be included in
ascertaining  whether he or she has had such  service as is  required in Section
2.1 for  eligibility,  provided  that he or she shall  have  become an  Eligible
Employee of a  Participating  Employer or an  Affiliated  Employer in connection
with such transaction.  The Company may evidence any determination regarding the
matters  addressed  above in this  section in any  instruments  executed by duly
authorized  officers or agents of the  Company,  including  (a) the  instruments
evidencing  the  transactions   whereby   individuals   become  Employees  of  a
Participating  Employer or Affiliated  Employer or (b) an instrument executed by
the Company  officers who are  authorized  pursuant to Section  11.2(a) to adopt
amendments to the Plan.

     2.4 Certain  Leaves of Absence.  An  Eligible  Employee of a  Participating
Employer who shall have been granted a leave of absence to become an Employee of

<PAGE>

an Affiliated  Employer and who becomes an Employee of such Affiliated  Employer
shall be an  Eligible  Employee  and may make  After-Tax  Contributions  or have
Pre-Tax  Contributions  made  under the Plan while he or she is on such leave of
absence and is so employed,  provided that (a) he or she shall have such service
as is required  under Section 2.1 for  eligibility,  including  service with the
Affiliated
                                      II-1

<PAGE>

Employer,  (b) he or she shall not be a participant  in any profit  sharing
plan, or stock bonus plan, and trust of the Affiliated  Employer  qualifying for
exemption  from taxation  under  Sections  401(a) and 501(a) of the Code, or any
other applicable  section of the Federal tax laws, as at the time in effect, and
(c) the Employee's  eligibility,  under the provisions of this section,  to make
After-Tax  Contributions or to have Pre-Tax Contributions made while an Employee
of the  Affiliated  Employer shall  terminate at the end of the two-year  period
commencing with the date the Employee's  leave of absence  commences,  or at the
termination of the Employee's leave of absence,  or upon the date the Affiliated
Employer becomes a Participating Employer, whichever first shall occur.

<PAGE>

                                       II-2

<PAGE>

                                   ARTICLE III
                                   -----------

                                  Contributions
                                  -------------

     3.1. Types of Contributions.

     a.  After-Tax  Contributions.  Effective  April 1, 2000, and subject to the
limitations  in Section 3.4, each  Eligible  Employee may elect to contribute to
the Plan for each pay  period an  After-Tax  Contribution  of up to  twenty-five
percent  (25%) of the  Employee's  Salary for the pay period,  provided that the
percentage of Salary contributed under this Section 3.1(a) and the percentage of
Salary  reduced  pursuant to the Employee's  Salary  Reduction  Agreement  under
Section 3.1(b) may not in the aggregate exceed twenty-five  percent (25%) of the
Eligible Employee's Salary for the pay period.  Contributions under this Section
3.1(a)  shall be made by payroll  deduction.  The  percentage  of Salary that an
Eligible Employee elects to contribute under this Section 3.1(a) must be a whole
percentage,  and the  dollar  amount  actually  contributed  on the basis of the
election shall be rounded down to the nearest whole dollar.

     The payroll deduction for After-Tax Contributions authorized by an Employee
may be  increased,  decreased  or  stopped by him or her only as of the first or
sixteenth  day of any month by  providing in such form and in such manner and at
such time as the Administration Committee shall specify a notice of such change.
If an Employee shall become  ineligible to make After-Tax  Contributions  to the
Plan,  the  Employee's   payroll  deduction   authorization   shall  immediately
terminate. If the payroll deduction authorization of an Employee shall terminate
for  any  reason,  the  Employee  thereafter  may,  subject  to the  eligibility
provisions of the Plan,  resume  contributing  to the Plan in such manner and at
such time as the Administration  Committee shall specify.  Except as is required
by 38 U.S.C. sec.4318, with respect to service of a Participant in the uniformed
services,  an Employee shall not be entitled to make After-Tax  Contributions to
the Plan,  and no deduction  shall be made  pursuant to the  Employee's  payroll
deduction  authori-  zation,  in or for any period in which the  Employee is not
receiving a Salary.

     The  Administration  Committee  may  require  employees  of  an  Affiliated
Employer who elect to make After-Tax  Contributions to the Plan to contribute by
payroll deductions or by such other method as the  Administration  Committee may
designate.  If the Administration  Committee shall designate a method other than
payroll deductions,  the Administration Committee shall adopt rules applying, as
nearly as  practicable,  to such method of making  After-Tax  Contributions  the
provisions of this Article III relating to payroll deductions.

     b.  Pre-Tax  Contributions.  Effective  April 1, 2000,  and  subject to the
limitations  in Section 3.4 hereof,  each  Eligible  Employee,  by  completing a
Salary  Reduction  Agreement in such form and in such manner and at such time as
the  Administration   Committee  may  prescribe,   may  elect  to  have  Company
contributions  allocated on his or her behalf as Pre-Tax  Contributions for each
pay  period  in such  amount  as he or she may  authorize  pursuant  to a Salary
Reduction  Agreement  not in  excess  of 25% of his or her  Salary  for such pay
period,  provided that the percentage of Salary  contributed  under this Section
3.1(b) and the  percentage of

<PAGE>

Salary  contributed  as an After-Tax  Contribution under Section 3.1(a) may not
in the aggregate exceed  twenty-five  percent (25%)of the  Eligible  Employee's
Salary for the pay  period.  The Salary  Reduction Agreement  shall  specify
that  such  reductions  are  to be  made  in a  whole percentage  amount of
Salary,  with the resulting  dollar amount  actually to be allocated on the
basis of the  election to be rounded down to the nearest  whole dollar.
                                    III-1

     Subject to the foregoing provisions of this Subsection 3.1(b), the rate of
Salary reduction authorized by the Employee may be decreased, increased or
stopped by the Employee by providing in such form and in such manner and at
such time as the Administration Committee shall specify a notice of such change.
If an Employee shall become ineligible to make After-Tax Contributions to the
Plan, his or her Salary Reduction Agreement shall immediately terminate. If the
Salary Reduction Agreement of an Employee shall terminate for any reason, the
Employee thereafter may, subject to the eligibility provisions of the Plan,
resume the making of Pre-Tax Contributions to the Plan by providing in such
form and in such manner and at such time as the Administration Committee shall
specify a Salary Reduction Agreement hereunder.

     In addition, and subject to such regulations as the Administration
Committee from time to time may prescribe, each Eligible Employee may elect to
have all or a portion of the following payments reduced in exchange for an
allocation of Company contributions as Pre-Tax Contributions: amounts under the
Performance Bonus Plan, FCA Dollars or Bonus Flex Dollars under the Flexible
Benefits Plan of the Company, and the Ford Credit Rewarding Performance
Management Incentive Plan (for Employees who are not bonus eligible) that would
otherwise be distributed to or allocated on behalf of the Employee, plus
amounts that must be taken into account under 38 U.S.C. sec. 4318 in connection
with service of a Participant in the uniformed services; provided, however,
that for purposes of this provision an Employee shall not be eligible unless
such Employee is enrolled on the active employment rolls of a Participating
Employer or an Affiliated Employer, or is on short-term disability leave from a
Participating Employer or an Affiliated Employer, at the date of making such
election.

     c. Company Matching  Contributions.  Except as may be hereinafter  provided
and subject to the limitations in Section 3.4,  effective  January 1, 2000 or as
soon as practical  thereafter,  Company  contributions shall be allocated to the
accounts of Eligible  Employees each pay period in an amount equal to 60% of the
aggregate  amount of  After-Tax  Contributions  and  Salary  reductions  made by
Eligible Employees who have been employed by one or more Participating Employers
for at least twelve (12) months following such Employees' original dates of hire
(for purposes of this Subsection 3.1(c)"match eligible Employees")(but excluding
any  amounts  attributable  to the  Performance  Bonus  Plan,  the  Ford  Credit
Rewarding  Performance  Management  Incentive Plan, or FCA Dollars or Bonus Flex
Dollars under Flexible  Benefits Plan of the Company) for such pay period and an
amount equal to the value of forfeited  assets  attributable to Company Matching
Contributions  and  Earnings  thereon  that are to be  restored  to the  Company
Matching  Contribution  Accounts of Participants for such pay period pursuant to
the provisions of

<PAGE>

Section 7.4 hereof, provided, however, that for purposes of this Subsection
3.1(c),  any portion of the aggregate of a match eligible  Employee's  After-Tax
Contributions  and Pre-Tax  Contributions  that  exceeds 10% of such  Employee's
Salary shall not be taken into account.

     With the exception of amounts allocated in restoration of forfeitures,  (i)
Company  contributions shall not be allocated pursuant to this Subsection 3.1(c)
for  any  pay  period  in an  amount  that  exceeds  the  Company's  current  or
accumulated  earnings and profits;  and (ii)  contributions  that are  allocated
shall  be  credited  to the  Company  Matching  Contribution  Accounts  of match
eligible Employees in proportion to such Employees' After-Tax  Contributions and
Pre-Tax  Contributions  that are taken into account  pursuant to the immediately
preceding sentence.
                                     III-2

Amounts credited to a Participant's Company Matching  Contributions Account
for a pay  period  shall be  credited  first  in  respect  of any  such  Pre-Tax
Contributions  as shall  have been made for the  Participant  for such month and
then,  to the extent that the amount so credited does not equal the total amount
to be credited to the Participant's  Company Matching  Contributions Account for
such  month,  the  remainder  shall be  credited  in respect of such  Employee's
After-Tax  Contributions as shall have been made by the Participant for such pay
period.

     d.  Rollover  Contributions.  Except  as is  provided  in  the  immediately
following sentence, a newly-hired Employee of a Participating Employer who would
be an  Eligible  Employee  except  for the fact  that  such  individual  has not
satisfied  the twelve (12) month service  requirement  of Section 2.1 may make a
rollover  contribution,  as permitted  under Section  402(c) of the Code, to the
Plan in cash in an amount not  exceeding  the total  amount of taxable  proceeds
distributed or  distributable to such Employee by a qualified plan maintained by
his or her immediately preceding former employer.  The rollover contribution may
be made  directly by such plan or by the Employee  within 60 days  following the
receipt by the Employee of such  distribution  from such former employer's plan,
subject to such regulations as the  Administration  Committee shall from time to
time adopt.  A direct  rollover  shall not be permitted if the acceptance of the
rollover contribution would require the Plan to provide benefits in an amount or
form not  otherwise  provided  under the Plan in order to  preserve  an  accrued
benefit under the transfer  plan.  Rollover  contributions  shall be invested in
accordance with the Participant's  election among investment elections available
under the Plan.

     e. Direct  Transfer of Assets from Another  Qualified Plan. The Trustee may
accept and hold pursuant to this Section 3.1.e assets  directly  transferred  to
the  Plan,  whether  in  connection  with a merger  of plans or  otherwise,  and
attributable to a Participant,  Eligible  Employee,  or Employee who would be an
Eligible  Employee  except that such individual does not satisfy the twelve (12)
month  service  requirement  under  Section 2.1 of the Plan when such assets are
attributable  to such  individual's  interest in another  plan  qualified  under
Section  401(a) of the Code and when such direct  transfer does not constitute a
direct  transfer  of a  rollover  distribution  (within  the  meaning of Section
401(a)(31)  of the Code);  provided  that (1) such other plan  provides  for and

<PAGE>

permits such transfers to the Plan and the sponsor of the other plan  authorizes
the transfer in writing,  (2) the transfer  complies  with the  requirements  of
Sections  401(a)(12) and 414(1) of the Code, (3) the transfer would and does not
require  the plan to  provide  or offer any type of  benefit,  optional  form of
benefit,  or mode or manner of benefit  distribution  it does not provide for in
the  absence of the  transfer,(4)  the  transfer  is  approved in writing by the
Administration  Committee or the parties  authorized  under  Section  11.2(a) to
amend the Plan,  or is  otherwise  authorized  in  connection  with a  corporate
transaction  (whether  merger,  asset  acquisition,  transfer of  employees,  or
otherwise), and (5) the transfer satisfies any procedural requirements specified
by the Administration Committee.

     3.2  Transfer  of  Assets  from  Savings  Plan  of a  Subsidiary  by  Which
Participant  Was  Formerly   Employed.   Subject  to  such  regulations  as  the
Administration  Committee  shall  from time to time  establish  and  subject  to
transfer by the  transferor  plan,  a  Participant  who is fully  vested under a
savings plan of a Subsidiary by which such  Participant was previously  employed
may elect to have the Plan accept transfer to the Plan of the entire amount,

                                     III-3

either in the form of cash or Company Stock, in such Participant's accounts
under such plan;  provided  that such  acceptance  would not require the Plan to
provide  benefits in an amount or form not otherwise  provided under the Plan in
order to  preserve  an  accrued  benefit  under the  transferor  plan.  Any such
transferred  amounts  shall be invested  in  accordance  with the  Participant's
election among investment  elections  available under the Plan. Such an election
to  transfer  fully  vested  amounts  may be made  within a  period  of one year
following transfer of employment.

     3.3 Contributions  Following Service in a Uniformed  Service. A Participant
who is reinstated  following service in a uniformed  service,  as defined in the
Uniformed  Services  Employment and Reemployment  Rights Act, may, to the extent
required  by said act,  elect to have  reductions  made from such  Participant's
Salary paid following  such  uniformed  service in exchange for an allocation of
Company contributions that shall be attributable to the period Salary reductions
were  not  otherwise  permitted  due  to  uniformed  service.   Such  additional
reductions shall be based on the amount of Salary, amounts under the Performance
Bonus Plan (or, if appropriate, the Ford Credit Rewarding Performance Management
Incentive  Plan),  and FCA Dollars  and Bonus Flex  dollars  under the  Flexible
Benefits  Plan of the Company that the  Participant  would have received but for
uniformed  service and shall be subject to the  provisions of the Plan in effect
during the applicable period of uniformed service.  Such Salary reductions shall
be made  during the  period  beginning  upon  reemployment  following  uniformed
service  and ending at the  lesser of (i) five  years or (ii) the  Participant's
period  of  uniformed  service  multiplied  by  three.  Such  additional  Salary
reductions  shall not be taken  into  account in the year in which they are made
for purposes of any limitation or requirement identified in Section 414(u)(1) of
the Code  provided,  however,  that such  reductions,  when added to  reductions
previously  made,  shall not exceed the  applicable  limits in effect during the
period of  uniformed  service

<PAGE>

that would have applied if the  Participant had continued to be employed by
the  Company  during  such  period.  Further,  payments  on any  loan  or  loans
outstanding  during the period of  uniformed  service  shall be  extended  for a
period of time equal to the period of uniformed service.

     3.4. Limitations on Contributions.

          a. Definitions. As hereinafter used in this Section 3.4:

     "Average  After-Tax  Contribution  Percentage"  means  the  average  of the
After-Tax Contribution percentages of the Eligible Employees in a group.

     "Average Pre-Tax Contribution  Percentage" means the average of the Pre-Tax
Contribution percentages of the Eligible Employees in a group.

     "After-Tax  Contribution  Percentage"  means  the  ratio  (expressed  as  a
percentage)  of  the  sum  of  After-Tax   Contributions  and  Company  Matching
Contributions  under the Plan on behalf of the Eligible Employee for the year to
the  Eligible  Employee's  compensation  for the year.  "Compensation"  for this
purpose means  compensation  paid by the Company to the Employee during the year
which is  required  to be reported  as wages on the  Employee's  Form W-2,  plus
Pre-Tax Contributions.  The determination of the contribution percentage and the
treatment  of After-Tax  Contributions  and the Company  Matching  Contributions
shall satisfy such other  requirements  as may be prescribed by the Secretary of
the Treasury pursuant to the Code.

                                     III-4

     "Pre-Tax Contribution percentage" means the ratio (expressed as percentage)
of Pre-Tax  Contributions  under the Plan on behalf of the Eligible Employee for
the year to the Eligible  Employee's  compensation for the year.  "Compensation"
for this purpose means  compensation  paid by the Company to the Employee during
the year which is required to be reported as wages on the  Employee's  Form W-2,
plus  Pre-Tax  Contributions.  The  determination  of the  Pre-Tax  Contribution
percentage and the treatment of Pre-Tax  Contributions  shall satisfy such other
requirements  as may be prescribed by the Secretary of the Treasury  pursuant to
the Code.

     The  After-Tax   Contribution   Percentage  and  the  Pre-Tax  Contribution
Percentage for any Eligible  Employee who is a Highly  Compensated  Employee for
the year and who is eligible to make After-Tax Contributions, to receive Company
Matching Contributions or to have Pre-Tax Contributions  allocated to his or her
accounts  under two or more plans  described  in  Section  401(a) of the Code or
arrangements  described in Section 401(k) of the Code that are maintained by the
Company  or  an  Affiliated   Employer  shall  be  determined  as  if  all  such
contributions were made under a single plan.

     "Highly Compensated  Employee" is any Employee who after the application of
Sections 414(b), (c), (m), (n) and (o) of the Code was:

<PAGE>

          (A)  a 5% owner (as  defined in Section  416(i)(1)of  the Code) at any
               time during the Plan Year or the preceding Plan Year; or

          (B)  for the preceding year -

               (i)  had  compensation  from his or her  employer  in  excess  of
                    $80,000 (as  adjusted by the  Secretary  of the  Treasury in
                    accordance with Section 414(g)(1)of the Code), and

               (ii) if the Company elects the application of this clause for the
                    preceding  year,  was in the top-paid group of employees for
                    such preceding  year. The top-paid group of employees is the
                    group consisting of the top 20 percent of the employees when
                    ranked on the basis of  compensation  paid during such year.
                    For this  purpose,  for the Plan Year  beginning  January 1,
                    1997,  "compensation"  shall  mean  compensation  within the
                    meaning of Section  415(c(3) of the Code determined  without
                    regard to Sections 125,  402(e)(3),  and 402(h)(1)(B) of the
                    Code, and for plan years beginning after on or after January
                    1,  1998,  shall  mean  compensation  as  defined in Section
                    415(c)(3) of the Code.

                    To the extent not described  here, the rules contained in
                    Section 414(q) of the Code shall  apply in  determining
                    the number  and  identity  of highly compensated employees.
                    Notwithstanding any other provision of the Plan, for
                    purposes  of  determining  the  number or  identity  of
                    highly  compensated employees,  employees shall include
                    leased  employees as defined in section 414(n)(2) of the
                    Code.

          b. Limitation on Compensation Taken Into Account.  The total amount of
     compensation  taken into  account  under the Plan for any  Employee for any
     year shall not exceed $150,000 multiplied by the cost-of-living  adjustment
     factor  prescribed by the Secretary of the Treasury under Section 415(d) of
     the Code for such year.  "Compensation" for this purpose means compensation
     paid by the

                                     III-5
     Company to the Employee during the year which is required to be reported as
     wages on the Employee's Form W-2.

          c. Annual Limit on Pre-Tax Contributions.  The total amount of Pre-Tax
     Contributions  allowable  for any  Employee  for any year  shall not exceed
     $7,000 multiplied by the cost-of-living adjustment factor prescribed by the
     Secretary of the Treasury under Section 415(d) of the Code for such year.

          d.  Limitations  on  Contributions  Applicable  to Highly  Compensated
     Employees.   The  After-Tax   Contribution   Percentage   and  the  Pre-Tax
     Contribution   Percentage  for  any  Eligible  Employee  who  is  a  Highly
     Compensated  Employee for the year shall be limited to the extent  required
     under the following tables:

                  After-Tax Contribution Percentage Limitation

<PAGE>
<TABLE>
<CAPTION>

<S>                                                   <C>
   If the average After-Tax                           The allowable average After-Tax
   Contribution Percentage of                         Contribution Percentage for the current
   Eligible Employees who are not                     Plan Year for Eligible Employees who
   Highly Compensated Employees for                   are Highly Compensated Employees shall
   the preceding Plan Year (or if                     not exceed:
   the Company elects in accordance
   with Section 401(m)(A) of the Code,
   the current Plan Year) is:

   (a)    2% or less                                  (a)    2.0 multiplied by the average After-Tax Contribution Percentage for
                                                             Eligible Employees who are not Highly Compensated Employees

   (b)    over 2% but not more than 8%                (b)    2.0 percentage points added to the average After-Tax Contribution
                                                             Percentage for Eligible Employees who are not Highly Compensated
                                                             Employees

   (c)    more than 8%                                (c)    1.25 multiplied by the average After-Tax Contribution Percentage for
                                                             eligible Employees who are not Highly Compensated Employees

                                                      or, in any case, such lesser amount as the Secretary of the Treasury shall
                                                      prescribe to prevent the multiple use of parts (a) and (b) of this limitation
                                                      with respect to any Highly Compensated Employee.
</TABLE>
<TABLE>
<CAPTION>

                                        Pre-Tax Contributions Percentage Limitation
<S>                                                   <C>
   If the average Pre-Tax                             The allowable average Pre-Tax
   Contribution Percentage of                         Contribution Percentage for
   Eligible Employees who are not                     the current Plan Year for Eligible
   Highly Compensated Employees for                   Employees who are Highly Compensated
   the preceding Plan Year (or if the                 Employees shall not exceed:
   Company elects in accordance with
   Section 40l(k)(3)(a) of the Code,
   the current Plan Year)is:
                                       III-6
   (a)    2% or less                                  (a)    2.0 multiplied by the average Pre-Tax Contribution percentage for
                                                             Eligible Employees who are not Highly Compensated Employees

<PAGE>

   (b)    over 2% but not more than 8%                (b)    2.0 percentage points added to the average Pre-Tax Contribution
                                                             percentage for Eligible Employees who are not Highly Compensated
                                                             Employees

   (c)    more than 8%                                (c)    1.25 multiplied by the average contribution percentage for Eligible
                                                             Employees who are not Highly Compensated Employees

                                                      or, in any case, such lesser amount as the Secretary of the Treasury shall
                                                      prescribe under Treas. Reg. Sections 1.401(m)-2(b) to prevent the multiple use
                                                      of parts (a) and (b) of this limitation with respect to any Highly Compensated
                                                      Employee.
</TABLE>

The  Administration  Committee shall, to the extent necessary to conform to
the   foregoing   limitations,   reduce  the  amounts  of  allowable   After-Tax
Contribution  and Company  Matching  Contributions,  and Pre-Tax  Contributions,
respectively, for the year with respect to any or all Eligible Employees who are
Highly  Compensated  Employees.   Any  such  reductions  by  the  Administration
Committee shall be made in such manner as the Administration Committee from time
to time may prescribe.  For purposes of this section, the Plan shall satisfy the
requirements  of  Sections  401(k)(3)  and  401(m) of the Code and  Treas.  Reg.
Sections 1.401(k)-1(b) and 1.401.(m)-1.

     e. Limitations on  Contributions  under Section 415 of the Internal Revenue
Code.

     (1)  Limitation. Notwithstanding any other provision hereof, the sum of the
          Annual Additions (as defined in Subsection 3.4(e)(2) in respect of
          any Employee for any Limitation Year (as defined in Subsection
          3.4(e)(3) shall not exceed the lesser of

          (a)  25% of the  Employee's  compensation  (as  defined in  Subsection
               3.4(e)(4), or

          (b) $30,000 (or, if greater, one-quarter of the dollar limitation in
              effect under Section 415(b)(1)(A) of the Code as adjusted for
              inflation by the Secretary of the Treasury pursuant to Section
              415(d) of the Code).

     (2)  Annual Addition. The Annual Addition in respect of any Employee for
          any Limitation Year (as defined in Subsection 3.4(e)(3) shall mean
          the sum for such year of

          (a)  Company Matching Contributions and Pre-Tax Contributions in
               respect of the Employee under this Plan, plus

<PAGE>

                                         III-7
          (b)  the sum of:

               (i)  the Employee's contributions under the Company's General
                    Retirement Plan (or any similar plan of a Subsidiary or
                    affiliate of the Company),

               (ii) the Employee's After-Tax Contributions that are matched by
                    Companyn Matching Contributions pursuant to Section 3.1(c)
                    hereof, and

               (iii)the Employee's After-Tax Contributions to this Plan that
                    are not matched by Company Matching Contributions.

     (3)  Limitation  Year. For purposes of this  paragraph,  "Limitation  Year"
          shall mean the calendar year.

     (4)  Compensation. As used in Subsection 3.4(e)(1)(a), "compensation" shall
          mean the compensation (as defined by Section 415(c)(3) of the Code (as
          modified by  Sections  414(u)(1)  and (7) of the Code and Treas.  Reg.
          Section  1.415-2(d))  paid or made available to an employee during the
          Limitation Year in question.

     (5)  Order of Application of Limitations. If the Annual Addition taken into
          account  under  Subsection   3.4(e)(2)  shall  exceed,   or  shall  be
          reasonably projected to exceed, the limitation of such Annual Addition
          required  by  Subsection  3.4(e)(1),   any  necessary  or  appropriate
          reduction  in  Employee  After-Tax  Contributions,   Company  Matching
          Contributions  or Pre-Tax  Contributions  shall be  applied,  first by
          reducing  amounts  contributed  as Pre-Tax  Contributions  pursuant to
          Section 3.1(b) hereof with respect to the Performance  Bonus Plan (or,
          if  appropriate,  the Ford  Credit  Rewarding  Performance  Management
          Incentive  Plan),  and, if necessary,  from FCA Dollars and Bonus Flex
          Dollars  under the Flexible  Benefits  Plan of the Company,  second by
          reducing the  Employee's  After-Tax  Contributions  taken into account
          under Subsection  3.4(e)(2)(b)(iii),  third by reducing the Employee's
          After-Tax   Contributions   taken  into   account   under   Subsection
          3.4(e)(2)(b)(ii),  and related Company Matching  Contributions (in the
          same  ratio as  provided  for  Company  Matching  Contributions  under
          Subsection  3.1(c)hereof),  fourth by reducing  Pre-Tax  Contributions
          that are not matched by Company Matching  Contributions,  and fifth by
          reducing  Pre-Tax  Contributions  that are matched by Company Matching
          Contributions pursuant to Subsection 3.1(c) hereof and related Company
          Matching  Contributions  (in the same ratio as  provided  for  Company
          Matching Contributions under Subsection 3.1(c) hereof).

          Notwithstanding any other provision of the Plan, in conforming  to the
          limitations  of  this   Subsection   3.4(e)(5),   the   aforementioned
          reductions in After-Tax Contributions,  Company Matching Contributions
          and Pre-Tax

<PAGE>

          Contributions  may be made in less than a full  percentage  amount and
          may be rounded down to the nearest full dollar. Any reduction pursuant
          to this  paragraph  may be  effected  (i) before  the Annual  Addition
          reaches the  limitation  required by Subsection  3.4(e)(1) in order to
          carry out the ordering rule of this  Subsection,  or (ii) with respect
          to After-Tax  Contributions,  retroactively as provided in Treas. Reg.
          Section  1.415-6(b)(6)(iv) by returning to the Employee such After-Tax
          Contributions
                                            III-8
          as are  necessary  to reduce the  Employee's  Annual  Addition to such
          limitation,  along with any  Earnings  or gains  attributable  to such
          returned contributions.  This retroactive reduction shall be made by a
          distribution  by the  Trustee  to the  Employee  of the cash  value of
          assets  in the  Employee's  After-Tax  Contribution  Account  that are
          attributable to the contributions to be returned,  which contributions
          shall  be  those  for the  most  recent  month  and  such  immediately
          preceding  months  as may be  necessary  to  complete  the  return  of
          contributions;  provided  that if less than all of such  contributions
          for a month will complete such return,  the cash value of assets to be
          distributed  shall be taken from the Employee's  Account in proportion
          to the way in which such contributions had been invested when made.

     (6)  Participants  In Plans of Subsidiaries  or Affiliated  Employer.  If a
          Participant,  at any time during the calendar  year, was a participant
          under any defined  contribution  plan (as that term is used in Section
          415(c) of the Code) of a  Subsidiary  of the Company or an  Affiliated
          Employer  (all such plans  being  referred to herein  collectively  as
          "affiliate  plans"),  then the determination of the Annual Addition in
          respect of such  Participant  for such  calendar  year as described in
          Subsection  3.4(e)(2)  hereof  shall be  modified  as provided in this
          Subsection:

          (a)  any  employer  contributions  (as  that  term is used in  Section
               415(c)(2)(A)  of the Code) and any forfeitures  allocated  during
               such year for the Account of such Participant under all affiliate
               plans in respect of services performed prior to the Participant's
               commencement of  participation  under this Plan shall be added to
               the amount determined under Subsection 3.4(e)(2); and

          (b)  any  employee  contributions  (as  that  term is used in  Section
               415(c)(2)(B)  of the Code) by such  Participant  during such year
               under all affiliate plans in respect of services  performed prior
               to the  Participant's  commencement of  participation  under this
               Plan shall be taken  into  account  for  purposes  of  subsection
               3.4(e)(2)(b).

     (7)  Combined  Limitation. The following limitation shall apply to
          Limitation Years beginning after December 31, 1996, and prior to
          January 1, 2000,  but not to  Limitation  Years beginning  after
          January 1, 2000. If the  Participant is, or was, covered under a
          defined benefit

<PAGE>

          plan and defined contribution plan maintained by the Company, the sum
          of the Participant's defined contribution plan fraction and defined
          benefit plan fraction may not exceed 1.0 in any Limitation Year.

          The defined benefit plan fraction is a fraction, the numerator of
          which is the sum of the Participant's projected annual benefits under
          all defined benefit plans (whether or not terminated) maintained by
          the Company and the denominator of which is the lesser of (i) 1.25
          times the dollar limitation of Section 415(b)(1)(A) of the Code in
          effect for the Limitation Year, or (ii) 1.4 times the Participant's
          average

                                      III-9

          compensation for the three  consecutive years that produces the higher
          average.  The defined  contribution  plan fraction is a fraction,  the
          numerator  of  which  is  the  sum  of  the  Annual  Additions  to the
          Participant's  Account under all defined contribution plans maintained
          by the  Company  (whether or not  terminated)  for the current and all
          prior Limitation Years, and the denominator of which is the sum of the
          lesser of the following amounts  determined for such year and for each
          prior year of  service  with the  employer:  (i) 1.25 times the dollar
          limitation in effect under Section  415(c)(1)(A)  of the Code for such
          year,  or (ii) 1.4 times the amount  which may be taken  into  account
          under Section 415(c)(1)(B) of the Code.

          Projected  annual  benefit  means  the  annual  benefit  to which  the
          Participant  would be  entitled  under the  terms of the Plan,  if the
          Participant  continued  employment  until  normal  retirement  age (or
          current  age,  if later) and the  Participant's  compensation  for the
          Limitation Year and all other relevant  factors used to determine such
          benefit remained  constant until normal  retirement age (or current if
          later).

          If,  in any  Limitation  Year,  the sum of the  defined  benefit  plan
          fraction and the defined  contribution  plan fraction will exceed 1.0,
          the rate of benefit  accruals  under the defined  benefit plan will be
          reduced so that the sum of the fractions equals 1.0.

          For purposes of this Subsection 3.4(e)(7), "Company" shall include all
          entities treated under Subsections 414(b), (c), and (m) of the Code as
          a single employer that includes the Company.

     3.5 Return of Contributions in Excess of Limitations.

     Subject to such  regulations as the  Administration  Committee from time to
time may  prescribe,  a  Participant  whose Salary  reductions  to this Plan and
similar  reductions  under  all  other  plans  in  which  the  Participant  is a
participant  exceed

<PAGE>

the limit of $7,000 multiplied by the cost-of-living adjustment factor
prescribed by the Secretary of the Treasury for any year may request and receive
return of such excess Pre-Tax Contributions under this Plan for such year and
Earnings thereon by submitting a request for return of such excess in this Plan
to the Administration Committee in such form as shall be acceptable to the
committee. Such amounts contributed for an immediately preceding Plan Year shall
be returned no later than each April 15 to Participants who submit such requests
to the Administration Committee no later than the immediately preceding March 1.

     Pre-Tax  Contributions and Earnings thereon in excess of the limitations in
Subsection  3.4(d)  applicable  to  such  contributions  shall  be  returned  to
Participants on whose behalf such contributions were made for the preceding Plan
Year at such times and upon such  terms as the  Administration  Committee  shall
prescribe.

     After-Tax  Contributions  and Company Matching  Contributions  and Earnings
thereon in excess of the  limitations  in Subsection  3.4(d)  applicable to such
contributions  shall be returned to Participants or to the Company,  as the case
may be, at such times and upon such terms as the Administration  Committee shall
prescribe.
                                      III-10
     Notwithstanding  the  foregoing  provisions  of this  Section  3.5,  excess
Pre-Tax  Contributions,  excess  After-Tax  Contributions,  and  excess  Company
Matching  Contributions,  and Earnings on such amounts, shall be returned on the
basis of the  amount of  contributions  by or on behalf of  Participants  and as
provided in Sections  401(k)(8)(C)  and  401(m)(6)(C)  of the Code for the years
beginning after December 31, 1996.

     3.6 Delivery of Contribution to Trustee.

     a.  After-Tax Contributions and Loan Payments. As soon as practicable after
each pay  period  but in any  event not  later  than 15 days  after the month of
payment of Salary for such period,  the Company shall pay to the Trustee (a) the
After-Tax  Contributions  for  such  period,  (b) the  amounts  of  payments  by
Participants  with respect to loans and interest  thereon pursuant to Article VI
hereof.  Upon receipt of such payments by the Trustee,  the aggregate  amount of
such  payments  (and  Earnings  thereon,  as from time to time  received  by the
Trustee) shall be credited to the respective  Accounts of the Participants,  and
the Trustee  shall hold,  invest and dispose of the same as provided in the Plan
and Trust Agreements.

     b. Company Contributions.  The Company shall, from time to time, pay to the
Trustee such amounts as are required  under the  provisions  of the Plan to fund
Pre-Tax Contributions and Company Matching Contributions.  Company contributions
may be paid to the Trustee in one or more  installments  at any time on or after
the  first  day of the  Plan  Year in  which  such  contributions  are  properly
allocable under Article III of the Plan, provided that sufficient  contributions
have been paid or delivered to fund  periodic  allocations  as they are credited
pursuant to Sections 3.1(b) and 3.1(c). In no event shall Company  contributions
allocable  under  Section  3.1(b) be paid or  delivered  later than the time the
corresponding

<PAGE>

reduction in the Participants' compensation would be considered to be assets of
the  Plan  under  U.S.  Department  of Labor  Regulation  section 2510.3-102.

     Company  contributions  that are not  immediately  allocable under the Plan
shall be invested separately and such amounts,  adjusted for any gains,  losses,
income  and  deductions,  shall  be  applied  to  reduce  Company  contributions
otherwise  required under the Plan. A Participant shall not have any interest in
or right or power in respect  of  Company  contributions  or  Earnings  thereon,
whether or not credited to his or her  account,  except as provided in the Plan.
In the event that  amounts  remain  unallocated  as of the end of any Plan Year,
such amounts  shall be allocated in equal dollar  amounts to the accounts of all
active  Participants that are non-highly  compensated  employees employed on the
last day of such Plan Year as  qualified  nonelective  contributions  within the
meaning of section 401(m) of the Code.

     If all or part of the  Company's  deductions  under Section 404 for Company
Matching  Contributions  are  disallowed by the Internal  Revenue  Service,  the
portion  of the  contributions  to  which  such  disallowance  applies  shall be
returned to the Company without  interest within one year of such  disallowance.
The Company may recover,  without interest,  the amount of any contribution made
on account of mistake of fact,  provided  that such  recovery is made within one
year after the date of such contribution. Any recovery by the Company of Company
contributions  to the Plan shall not exceed the value at the time of recovery of
assets acquired with the Company contributions and with Earnings thereon.
                                         III-11

     3.7 Participant's Rights Not Transferable.

     Except to the extent  permitted  by Sections  401(a)(13)  and 414(p) of the
Code, no right or interest of any  Participant  or  beneficiary of a Participant
under the Plan or in his or her Account shall be assignable or transferable,  in
whole or in part, either directly or by operation of law or otherwise, including
without limitation by execution, levy, garnishment, attachment, pledge or in any
other manner, except in accord with provisions of a qualified domestic relations
order as defined by Section  206(d) of ERISA and Section  414(p) of the Code and
further  excluding  devolution  by death or mental  incompetency;  no  attempted
assignment or transfer  thereof shall be effective;  and no right or interest of
any Participant or beneficiary of a Participant  under the Plan or in his or her
Account shall be liable for, or subject to, any  obligation or liability of such
Participant or beneficiary of a Participant.

<PAGE>

                                  III-12

<PAGE>

                                   ARTICLE IV
                                   ----------

                              Investment Elections
                              --------------------

     4.1  Participant's  Election As to  Investment  of Funds.  A  Participant's
After-Tax  Contributions and Pre-Tax Contributions each shall be invested as the
Participant  shall  elect with  respect to each in one or more of the Ford Stock
Fund,  the  Associates  Stock Fund  (through  but not after March 2, 1998),  the
Common Stock Fund, the Bond Fund, the Interest Income Fund, the Income Fund (for
contributions  made prior to January 1, 1996),  the Fidelity  Magellan Fund, the
Fidelity Contrafund, the Fidelity Overseas Fund, Fidelity Asset Manager: Income,
Fidelity Asset Manager, Fidelity Asset Manager: Growth and any of the Additional
Mutual Funds listed in Appendix A, provided that the amount  contributed  to any
investment  election shall be in such minimum  percentage of the contribution as
is  from  time  to  time  specified  by  the   Administration   Committee,   and
contributions  in  excess  of the  minimum  shall be made in  increments  of one
percent.  A prospectus for the Fidelity Magellan Fund, the Fidelity  Contrafund,
the Fidelity  Overseas Fund, the Fidelity  Asset Manager:  Income,  the Fidelity
Asset  Manager,  the Fidelity  Asset  Manager:  Growth,  all of which are mutual
funds,  or for any of the Additional  Mutual Funds listed in Appendix A shall be
delivered  promptly to any Employee or Participant upon request of such Employee
or Participant.

     A Participant's  initial  investment  election hereunder shall be stated in
his or her notice of election to participate or Salary Reduction Agreement. Each
investment  election  hereunder  shall  remain in effect  until  changed  by the
Participant,  and may be  changed  effective  for any pay  period in  respect of
After-Tax  Contributions or Pre-Tax  Contributions made after providing a notice
in such form and in such manner and at such time as the Administration Committee
shall specify.  Performance  Bonus Plan  distributions and FCA Dollars and Bonus
Flexdollars  from the Flexible  Benefits  Plan of the Company that  Participants
elect to have  contributed  to the Plan shall be invested in  accordance  with a
Participant's  election  in  effect  at  the  time  of  contribution,  or if the
Participant  does not have in effect  such an election  with  respect to Pre-Tax
Contribution,  in accordance with the Participant's  latest Pre-Tax Contribution
election or, in the absence of any such election,  in the Interest  Income Fund.
Company  Matching  Contributions  shall  be  invested  in the Ford  Stock  Fund.
Notwithstanding  the  foregoing  provisions  of this  Section  4.1,  at any time
following March 2, 1998,  Participants shall not be allowed to invest additional
contributions of any type in the Associates Stock Fund, and an election, if any,
to invest in the Associates  Stock Fund shall be deemed an election to invest in
the Ford Stock Fund.

     A  Participant's  investment  election  pursuant  to this  Section  4.1 and
pursuant to Section 4.2 hereof shall be transmitted to the party or parties from
time to time  specified by the  Administration  Committee  and  communicated  to
Participants,  and such election may be transmitted in writing, by telephone, or
by other  electronic  means as the  Administration  Committee shall from time to
time determine.  The party or parties specified by the Administration  Committee
shall be responsible for complying with Participants'  investment  elections and
shall  provide  written  confirmations  of  elections to  Participants  within a
reasonable

<PAGE>

time,  as  from  time  to  time  determined  by  the  Administration Committee,
following the making of the election.
                                         IV-1

     4.2 Transfer of Assets to Other Investment Elections. Except as is provided
in subsections  (c) and (d) of this Section 4.2, any  Participant  may elect, at
such times,  in such  manner,  to such extent and with respect to such assets as
the Administration  Committee from time to time may determine, to have the value
of all or part of the  Participant's  vested  assets  invested in any  available
investment  election  under  the Plan  transferred  and  invested  in any  other
available investment election under the Plan; provided, however, that:

     (a)  a  Participant  may  make one or more  such  transfer  elections  with
          respect to his or her Accounts  during each business day,  except that
          effective  June 1, 2000,  a  Participant  shall not be allowed to make
          transfers  into or out of the Ford Stock Fund more than five (5) times
          in a given month, and this limitation applies regardless of the number
          of  transfers a  Participant  may have  engaged in with respect to the
          Ford Stock Fund in any previous month or months;

     (b)  a Participant may make transfer elections in either a dollar amount or
          a percentage of the amount invested in such  investment  election from
          which such transfer is elected, in increments of one percent, provided
          that the amount  transferred is at least minimum  percentage from time
          to time  specified  by the  Administration  Committee  or, if greater,
          $250.00;  provided  that  if the  amount  invested  in the  investment
          election  from which  transfer  is elected is less than  $250.00,  the
          entire value of the assets  invested in the  investment  election from
          which transfer is elected;

     (c)  all such transfer elections shall be subject to such other regulations
          as the  Administration  Committee  may  prescribe,  which may specify,
          among  other  things,  application  procedures,  minimum  and  maximum
          amounts that may be transferred,  procedures for determining the value
          of assets the subject of a transfer  election and other  matters which
          may  include   conditions  or  restrictions   applicable  to  transfer
          elections; and

     (d)  after March 31, 2000, the Scudder  International Bond Fund, previously
          listed on  Appendix  A, shall no longer be  offered  as an  investment
          option. From April 1, 2000 through December 31, 2000, no assets may be
          transferred  into the Scudder  International  Bond Fund.  On and after
          April 1, 2000, elections to invest assets in the Scudder International
          Bond Fund made prior to that date shall be  treated  as  elections  to
          invest in the Interest  Income Fund.  During said period assets may be
          transferred  from the Scudder  International  Bond Fund into any other
          available investment election under the Plan. All assets remaining in

<PAGE>

          the Scudder International Bond Fund as of the close of the New York
          Stock Exchange on December 31, 2000, shall be transferred into the
          Interest Income Fund as soon as reasonably practicable thereafter.

                                        IV-2

<PAGE>

                                    ARTICLE V
                                    ---------

 Vesting and Forfeiture of Assets Attributable to Company Matching Contributions
 -------------------------------------------------------------------------------

     5.1 Vesting.

     (a) Pre-Tax  Contributions  and After-Tax  Contributions.  A  Participant's
right  to  the  assets  attributable  to  After-Tax  Contributions  and  Pre-Tax
Contributions is immediately  nonforfeitable regardless of the Participant's age
and service. Assets attributable to Company Matching Contributions shall vest in
accordance with the following  provisions of this paragraph for employees on the
active employment roll on or after October 1, 1995.

     (b) Company Matching Contributions. Assets attributable to Company Matching
Contributions shall become nonforfeitable upon the occurrence of the earliest of
the following:

     (i)  attainment by the Participant of the normal retirement age of 65 as an
          active  employee  or, if earlier,  five years after the  Participant's
          original date of hire;

     (ii) retirement  of  the  Participant  pursuant  to the  provisions  of any
          retirement plan maintained by the Company or a Subsidiary;

     (iii) death of the Participant prior to termination of employment;

     (iv) death or disability of a Participant  who terminates  employment  with
          the Company or a Participating  Employer to enter military service and
          is  therefore  unable  to  return  to  work  with  the  Company  or  a
          Participating Employer within the applicable reinstatement period; or

     (v)  election by a Participant in accordance with the provisions of Section
          7.5  hereof  to  have  the  assets  in  such   Participant's   Account
          transferred  to  the  savings  plan  of a  Subsidiary  by  which  such
          Participant is currently employed.

Notwithstanding  the  foregoing  provisions  of  this  Section  5.1,  (1) a
Participant  who has attained at least three (3) Vesting  Years of Service under
the PRIMUS Automotive Financial Services, Inc. Prime Account as of the time such
Participant  becomes a Participant shall at all times be fully vested in Company
Matching Contributions, (2) each Participant who, under the terms of the Plan in
effect  on  September  30,  1995,  would at any  time  thereafter  and  prior to
termination  of  employment  have  become  fully  vested  in  Company   Matching
Contributions  pursuant  to those  terms  shall be  deemed  fully  vested on the
earlier to occur of the  satisfaction  of the  vesting  conditions  in effect on
September 30, 1995, or the  satisfaction  of the vesting  conditions that became
effective  October 1, 1995,  and (3) each  Participant  who is an Employee as of
December  31,  1997,  and who is  released to Marriott or AVI as a result of the
sale of cafeteria  service  business to those  entities shall be fully vested in
his or her Company Matching

<PAGE>

Contributions Account on the day immediately preceding the date the individual
becomes employed by Marriott or AVI.

     (c)  Assets   Transferred  from  Savings  Plan  of  a  Subsidiary.   Assets
transferred to the Plan pursuant to Section 3.2 shall be nonforfeitable.

                                         V-1

     (d) Matching  Contributions  Attributable  to PRIMUS  Automotive  Financial
Services, Inc. Notwithstanding the provisions of Section 5.1(b)(i),  assets in a
Participant's  Account  attributable  to matching  contributions  made by PRIMUS
Automotive  Financial  Services,  Inc.  under the  PRIMUS  Automotive  Financial
Services, Inc. Prime Account ("Prime Account") shall vest in accordance with the
following  schedule.  For  purposes  of  said  schedule,   service  with  PRIMUS
Automotive Financial Services,  Inc. shall be treated as service with Ford Motor
Credit  Company or any  Affiliated  Employer that is a member of the  controlled
group of  corporations  (within the  meaning of  Sections  414(b) and (c) of the
Code) that  includes the Company,  and all Vesting  Years of Service,  including
fractions thereof, under the Prime Account shall be aggregated with service with
Ford Motor Credit Company  (determined  beginning with a  Participant's  date of
employment with Ford Motor Credit Company) or any Affiliated  Employer that is a
member of the controlled  group of corporations  (within the meaning of Sections
414(b) and (c) of the Code) that includes the Company, such latter service to be
determined on the basis that 365 days of service  equals a year of service,  and
with fractional years of service to be determined on that basis.

                    Years of Service        Vested Percentage
                    ----------------        -----------------
                    1                              0%
                    1 but less than 2             20%
                    2 but less than 3             50%
                    3 or more                    100%

     5.2  Forfeiture.

     a.  Termination  of Employment.  Assets  attributable  to Company  Matching
Contributions  shall be forfeited  upon the  termination  of  employment  of the
Participant prior to the fifth anniversary of the Participant's original date of
hire  without a return  to work for any  reason  other  than  death,  Retirement
pursuant to the provisions of any Retirement Plan maintained by the Company or a
Subsidiary,  layoff,  medical leave or release due to continued disability after
expiration of medical leave,  regular employment by an Affiliated  Employer,  or
where the Participant  shall be granted a military leave of absence,  and either
(A)  the  Participant's   employment   subsequently  is  reinstated  under  then
applicable  personnel  policies  of the  employer  or (B)  within  the period so
provided for reinstatement,  the Participant either dies or becomes eligible for
Retirement pursuant to the provisions of any Retirement Plan.

     b.  Withdrawal of Assets.  If a Participant  is required to forfeit  assets
attributable to Company  Matching  Contributions  as a result of a withdrawal by
the

<PAGE>

Participant,  then such Participant may subsequently  elect to return such a
withdrawal  to the Plan and have the assets  attributable  to  Company  Matching
Contributions  restored to his or her Account as provided in  Subsection  7.4(f)
hereof.

                                      V-2

<PAGE>

                                   ARTICLE VI
                                   ----------

                              Loans to Participants
                              ---------------------

     Subject to such  regulations as the  Administration  Committee from time to
time may prescribe, a Participant may apply for and receive a loan from the Plan
provided that the aggregate of all such loans does not exceed the lesser of:

     (i) the cash value, at the time of any such loan, of the assets (except any
     amount credited to such Participant's Income Fund subaccount) in his or her
     Pre-Tax  Contribution  Account or After-Tax  Contribution  Account that are
     attributable  to  Pre-Tax  Contributions  made on his or her  behalf  or to
     After-Tax  Contributions  and that the Participant shall have designated to
     be used to provide the amount of the loan;

     (ii) fifty percent (50%) of the cash value of assets,  at the time any such
     loan is made, in his or her account but not more than $50,000; or

     (iii) $50,000 reduced by the difference between such Participant's  highest
     loan balance under all plans of the Company and its Subsidiaries during the
     previous  12 months  (ending on the day before the  effective  date of such
     loan from the Plan) and such  Participant's  loan balance on the  effective
     date of such loan.

     All such loans shall (i) be available to all  Participants  on a reasonably
equivalent basis, (ii) be adequately secured and (iii) bear a reasonable rate of
interest and be subject to such other  requirements,  including  repayment terms
(repayment of loans must be made not less  frequently  than  quarterly),  as the
Administration  Committee  from time to time may prescribe,  provided,  however,
that (a) the entire amount of any such loan and all amounts of related  interest
must be repaid not later than 60 months (or,  when  permitted by law, such later
date as the Administration Committee may determine) after the month in which the
loan is effective and (b) repayments  shall be made by a Participant from his or
her salary by payroll  deductions or in such other manner as the  Administration
Committee may prescribe.  All such requirements shall be applicable on a uniform
and non-discriminatory basis to all Participants who may apply for such loans.

     Amounts paid by a Participant, including interest payments, with respect to
any such loan  shall be  credited  to a loan  subaccount  in such  Participant's
Pre-Tax Contribution Account.

     Loan repayments,  including interest,  on loans made before October 1, 1995
shall be invested in the Interest  Income Fund until the  Participant  elects to
have such assets transferred. Loan repayments, including interest, on loans made
on or after October 1, 1995 shall be invested in the latest investment elections
made on or after  October  1, 1995 by the  Participant  with  respect to current
After-Tax or Pre-Tax  Contributions or, in the absence of such election,  in the
Interest  Income  Fund  until  the  Participant   elects  to  have  such  assets
transferred. Loan repayments, including interest, on loans made on or after

<PAGE>

October 1, 1995 will be allocated to After-Tax or Pre-Tax Contribution Accounts,
or both, from which loans were made and in the same proportion.

     In the event of a default  on a loan,  the  Participant's  accrued  benefit
under the Plan shall not be reduced until an otherwise permissible distributable
event occurs (e.g., attaining age 59 1/2, termination of employment).

                                    VI-1

<PAGE>

                                   ARTICLE VII
                                   -----------

                    Withdrawals, Distributions and Transfers
                    ----------------------------------------

     7.1  Withdrawal by Participants of Assets Prior to Termination of
          Employment.

     (a) Pre-Tax Contributions. A Participant shall not be permitted to withdraw
prior to his or her  termination  of employment all or any portion of the assets
in the  Participant's  Pre-Tax  Contribution  Account  attributable  to  Pre-Tax
Contributions;  provided,  however,  that  such  withdrawal  shall be  permitted
subject  to the  conditions  in  Section  7.4  hereof  (i) at any time after the
Participant  shall  have  attained  age 59-1/2 or (ii)  prior to  attaining  age
59-1/2,  if (a) the  withdrawal  is made on  account of an  immediate  and heavy
financial  need of the  Participant  and is necessary to satisfy such  financial
need  or (b) the  requirements  of  safe  harbors  as  provided  in  regulations
promulgated by the Internal Revenue Service are met; provided, however, that any
withdrawal on account of financial  hardship  cannot exceed the value of Pre-Tax
Contribution  assets as of December  31, 1988 plus the dollar  amount of Pre-Tax
Contributions  made to the Account of the Participant  thereafter,  exclusive of
Earnings thereon, and provided,  further, that in the event of any withdrawal by
a  Participant  prior to attaining  age 59-1/2,  such  Participant  shall not be
permitted to make contributions to the Plan for a period of 12 months succeeding
the date of any withdrawal of assets. The assets so withdrawn shall be delivered
to the  Participant  as soon as  practicable  after  the  effective  date of the
withdrawal.

     The following are the only financial  needs that are  considered  immediate
and heavy under the Internal Revenue Service safe harbors referred to above: (1)
expenses  incurred or  necessary  for medical  care  described  in Code  section
213(d),  of the Participant,  the  Participant's  spouse,  or the  Participant's
dependents;  (2) the  purchase  (excluding  mortgage  payments)  of a  principal
residence  of the  Participant;  (3) payment of tuition and related  educational
fees for the next 12 months of post-secondary education for the Participant, the
Participant's  spouse,  children or  dependents;  or (4) the need to prevent the
eviction  of the  Participant  from  or a  foreclosure  on the  mortgage  of the
Participant's principal residence.

     A hardship  withdrawal is not necessary to the extent it exceeds the amount
necessary  (including  taxes) to relieve the need or to the extent that the need
may be satisfied from other resources reasonably available to the Participant.

     (b)  After-Tax  Contributions.  Subject to the  conditions  in Section  7.4
hereof,  at any time or from time to time prior to termination of employment,  a
Participant  may  withdraw all or part of the cash value of assets in his or her
After-Tax Account that are attributable to his or her After-Tax Contributions or
Earnings  thereon;  provided,  however,  that  such  Participant  shall  not  be
permitted to make contributions to the Plan for a period of 12 months succeeding
the date of any  withdrawal  of assets on which Company  Matching  Contributions
were based if such  withdrawal is made within two years following the end of the
year in which such contributions were made.

<PAGE>

     (c) Company  Matching  Contributions.  Subject to the conditions in Section
7.4, a  Participant  may withdraw all or part of the cash value of assets in his
or her Company Matching  Contributions  Account that are attributable to Company
Matching  Contributions  or  Earnings  thereon at any time and from time to time
prior to termination of employment to the extent such assets shall have vested
                                      VII-1

pursuant to the provisions of Section 5.1 hereof; provided, however, that,
except in the case of a Participant who has attained age fifty-nine and
one-half, no such withdrawal shall be permitted for two years following the end
of the year in which Company Matching Contributions were made.

     (d)   Systematic   Withdrawals   of   Pre-Tax   Contributions,    After-Tax
Contributions and Company Matching Contributions After Attainment of Age 59-l/2.
After  attainment  of age 59 1/2, a  Participant,  regardless  of  whether  such
Participant has terminated employment, may elect to make a systematic withdrawal
of the cash value of assets in such Participant's account in monthly, quarterly,
semi-annual or annual  installments  over such period of time as the Participant
shall specify, as provided in Subsection 7.2(c) hereof for Participants who have
terminated employment.

     (e) Pre-Tax  Contributions,  After-Tax  Contributions  and Company Matching
Contributions After Attainment of Age 70-l/2.  After attainment of age 70 1/2, a
Participant,  regardless of whether such Participant has terminated  employment,
may elect to make a withdrawal of the cash value of assets in the  Participant's
account over the life of the  Participant or the joint lives of the  Participant
and the  Participant's  beneficiary  under the Plan (including the Participant's
spouse),  as provided in  Subsection  7.2(d)  hereof for  Participants  who have
terminated employment.

     (f) Assets  Attributable  to a Rollover  into PRIMUS  Automotive  Financial
Services,  Inc.  Prime Account.  A Participant  may at any time and from time to
time  withdraw  all or any  portion of the assets in the  Participant's  Account
attributable to a Rollover into the PRIMUS Automotive Financial Services,  Inc.,
Prime Account.

     7.2  Withdrawal by Participant of Assets at or After Termination of
          Employment.

     (a) General.  Subject to the conditions in Section 7.4 , a Participant  who
has terminated  employment for any reason (whether  voluntarily or by discharge,
with or  without  cause),  may  elect  to make a  withdrawal  in any of the ways
provided for in (b), (c) or (d) of this Section.

     (b) Ordinary  Withdrawals.  A Participant who has terminated employment may
elect  to  withdraw  all or part  of the  cash  value  of  assets  in his or her
After-Tax  Contribution  Account and Pre-Tax  Contribution  Account and the cash
value of assets  in his or her  Company  Matching  Contribution  Account  to the
extent the same shall have vested as provided in Section 5.1 hereof. Such assets
shall be delivered to the Participant as soon as practicable  after receipt of a
request

<PAGE>

for  withdrawal  made  by  the  Participant  at  or  after  termination  of
employment in such form and in such manner as the Administration Committee shall
specify.  In the case of a Participant who has terminated  employment,  attained
age  sixty-five  (65),  and  requested a  distribution  of the cash value of the
assets in his or her  Accounts  that are vested,  provided  that the request for
distribution  is received  by the end of the Plan Year in which the  Participant
attains age sixty-five  (65), the  distribution  shall be made no later than the
60th day after the close of the Plan Year in which such Participant  attains age
sixty-five (65).

     (c) Systematic Withdrawals. A Participant who has terminated employment may
elect a systematic  withdrawal of the cash value of assets in such Participant's
Account in monthly,  quarterly,  semi-annual  or annual  installments  over such
period of time as the Participant shall specify. Each such installment shall be
                                       VII-2
paid in an amount  equal to the cash value of assets in such  Participant's
Account on the effective date of each such installment  multiplied by a fraction
the  numerator  of which is one and the  denominator  of which is the  number of
installments remaining in the period specified by the Participant.  For purposes
of this  subsection  7.2(c),  the term  "effective  date" shall mean the date an
installment is debited from a Participant's Account. The cash value of each such
installment in a systematic  withdrawal shall be withdrawn on the effective date
of the  installment  proportionately  from  each of the  investments  which  the
Participant   has  elected  under  the  Plan  as  of  the  effective  date.  The
Administration  Committee  shall  establish  the  effective  date or  dates  for
systematic withdrawal payments, which may be a uniform monthly date for all such
payments,  and shall communicate such date or dates to Participants.  Systematic
withdrawals shall be made and in such manner subject to such requirements as the
Administration  Committee  shall  determine.  In the event  that the  systematic
withdrawals  specified by the  Participant do not meet the minimum  distribution
requirements  beginning  at age  seventy  and one half (70  1/2)  under  section
401(a)(9) of the Code as specified in Section 7.3 hereof,  then such  additional
amounts shall be  distributed  in accordance  with the provisions of Section 7.3
hereof as necessary to satisfy such minimum distribution requirements.

     (d)  Withdrawals  Over Life  Expectancy.  A Participant  who has terminated
employment  and who has  attained  age seventy and  one-half  (70 1/2) may elect
withdrawal  of the cash value of assets in the  Participant's  Account  over the
life of the Participant or the lives of the  Participant  and the  Participant's
beneficiary  under the Plan (including the  Participant's  spouse) in accordance
with  Section  401(a)(9)  of the  Code and with  regulations  prescribed  by the
Secretary  of the Treasury  thereunder  and subject to such  regulations  as the
Administration   Committee  may   prescribe.   Such  election  may  be  made  by
Participants who have terminated  employment to have such  distribution  made in
lieu of  distribution  over a period  of 15 years as  provided  in  Section  7.3
hereof.

     7.3  Mandatory Distributions.

     (a)  General.  Distribution  by the Plan of all  assets in a  Participant's
Account,  including assets attributable to Company Matching Contributions to the

<PAGE>

extent such assets shall have  vested,  shall be governed by the  provisions  of
(b), (c), (d) and (e) of this Section.

     (b)  Termination  of  Employment.  In the  case  of a  Participant  who has
terminated employment for any reason (whether voluntary or by discharge, with or
without cause) and who qualifies for but has not elected a distribution pursuant
to Subsection  7.2(d)that satisfies the requirements of Section 401(a)(9) of the
Code,  notwithstanding  any  other  provision  of  this  Plan  (other  than  the
immediately following sentence), the distribution of the cash value of assets in
his or her After-Tax  Contributions Account and Pre-Tax Contribution Account and
the cash value of assets in his or her Company Matching  Contribution Account to
the extent the same shall have vested as  provided in Section 5.1 hereof,  shall
in the case of a Participant who attains age 70 1/2 on or after January 1, 1988,
begin not later than April 1 of the calendar year following the calendar year in
which the  Participant  attains age seventy and  one-half  (70-1/2) and shall be
made over a period of  fifteen  (15)  years  (15 years is a period  certain  not
extending beyond the joint life and last survivor  expectancy of the Participant
and the Participant's designated  beneficiary).  Notwithstanding the immediately
preceding

                                       VII-3
sentence,   a  Participant   described  therein  may  at  anytime  elect  a
distribution  under Section 7.2 hereof. All distributions made with respect to a
Participant  who has attained age 70-l/2  shall be made in  accordance  with the
regulations  prescribed by the Secretary of the Treasury under Section 401(a)(9)
of the Code, including the minimum distribution  incidental benefit requirements
of Prop.

Treas. Reg. Section  1.401(a)(9)-2,  and subject to such regulations as the
Administration  Committee may  prescribe.  In the case of a Participant  who has
attained age sixty-five (65),  distribution shall be made no later than the 60th
day after the close of the year in which the Participant  attains age sixty-five
(65).  Notwithstanding the immediately  preceding sentence,  the following shall
apply in the  event the Plan  receives  a  favorable  Internal  Revenue  Service
determination  letter regarding  amendments dated November 25, 1997. In the case
of a member who has  terminated  employment  and  attains age  sixty-five  (65),
distribution  of the value of the assets in his or her accounts  that are vested
shall be made no later  than the 60th day  after  the  close of the Plan Year in
which such Participant  attains age sixty-five  (65);  provided that in any such
case no distribution  shall commence until the  Participant  files a request for
benefits.

     If the Participant's Account was established on or after October 1, 1995
and the  value of the  Participant's  Account  is less than  $3,500  (determined
within 90 days after  termination of employment) and was less than $3,500 on the
effective date of any prior withdrawal or distribution  from such  Participant's
Account,  the cash  value  of  assets  in such  Participant's  Account  shall be
distributed as soon as practicable.

<PAGE>

     If any loan is in  default as of the end of any year, the entire balance of
such loan shall be  treated  as a  distribution  under the Plan as of the end of
such year.

     (c)  Attainment  of Age  70-l/2  by an  Employee  Who  Has  Not  Terminated
Employment.  In the case of a  Participant  who has  attained  age  seventy  and
one-half  (70-1/2) on or after  January 1, 1988 and prior to January 1, 1997 and
who has not terminated  employment,  and in the case of any Participant who is a
5-percent  owner  (within the meaning of Code  Section  416) with respect to the
Plan Year in which the  Participant  attains age 70-1/2) and has not  terminated
employment, distribution of the cash value of assets in his or her Account shall
begin not later than April 1 of the calendar year following the calendar year in
which the  Participant  attains age seventy and  one-half  (70-1/2) and shall be
made over a period of  fifteen  (15)  years  (15 years is a period  certain  not
extending beyond the joint life and last survivor  expectancy of the Participant
and  the  Participant's  designated  beneficiary);   upon  termination  of  such
Participant's  employment,  the assets  remaining in the  Participant's  Account
shall be distributed.  If a distribution  commences under this Section 7.3 while
the Participant is employed,  such  distribution is not discontinued as provided
in the last sentence of this subparagraph,  and the Participant dies while still
employed, the assets remaining in the Participant's Account shall be immediately
distributed  to the  Participant's  beneficiary  (other  than the  Participant's
surviving spouse) as provided in Subsection  7.3(e).  Such distribution shall be
made in  accordance  with the  regulations  prescribed  by the  Secretary of the
Treasury under Section 401(a)(9)of the Code,  including the minimum distribution
incidental benefit requirements of Prop. Treas. Reg. Section 1.401(a)(9)-2,  and
subject to such regulations as the Committee may prescribe.
                                     VII-4
     Distributions  to  active  Employees  who were not  5-percent  owners  with
respect to the Plan Year in which they  attained  age  seventy  and one half (70
1/2) prior to January 1, 1997 may be  discontinued  by such  Employee  effective
beginning with distributions that would otherwise be required to be made for the
1997 plan year.

     (d)  Dividends on Stock in the Ford Stock Fund and  Associates  Stock Fund.
Commencing,  in the case of the Ford Stock Fund,  with the dividend  payable for
the third quarter of 1996,  all or a portion of cash dividends paid on shares of
Company Stock in the Ford Stock Fund that have not been in the Plan continuously
since January 1, 1989 shall be distributed  proportionately  to Participants who
have assets in the Ford Stock Fund on the dividend record date and do not reject
such  distribution.  Commencing,  in the case of the Associates Stock Fund, with
the first  dividend after April 1, 1997, and ceasing as of March 3, 1998, all or
a portion of cash dividends paid on shares of Associates Stock in the Associates
Stock Fund shall be distributed  proportionately to Participants who have assets
invested in the  Associates  Stock Fund on the  dividend  record date and do not
reject such distribution. The amount of such dividends that shall be distributed
to Participants who do not reject distribution shall equal the lesser of (i) the
total of such cash dividends, or (ii) the total amount of cash dividends paid on
all shares held in the Ford Stock Fund or Associates Stock Fund, as appropriate,
multiplied  by the ratio of the number of Ford  Stock  Fund Units or  Associates
Stock Fund Units,  as appropriate,  in the Accounts of  Participants  who do not

<PAGE>

reject such  distribution  to the number of Ford Stock Fund Units or  Associates
Stock Fund Units,  as  appropriate,  in the Accounts of all  Participants,  such
determination to be made as of the dividend record date. The amount of such cash
dividends  that shall be distributed  to each  Participant  who has not rejected
such  distribution  shall be equal to the total  amount of cash  dividends to be
distributed  multiplied  by the ratio of the  number of Ford Stock Fund Units or
Associates Stock Fund Units, as appropriate,  in the Account of such Participant
to the total number of Ford Stock Fund Units or Associates  Stock Fund Units, as
appropriate,  in the Accounts of all  Participants  who have not  rejected  such
distribution,  all  determined as of the close of the New York Stock Exchange on
the record date for the dividend.

     The  Administration  Committee shall from time to time determine the manner
in which Participants shall be provided an opportunity to reject distribution of
Company Stock and Associates  Stock dividends or to change a prior election with
respect to  distribution.  For  administrative  efficiency,  the  Committee  may
require  Participants  who elect to reject a distribution of dividends on either
Company Stock or Associates  Stock to reject a distribution of dividends on both
Company Stock and Associates Stock.

     Distribution of such dividends  shall be made as soon as practicable  after
receipt of such dividends by the Trustee.

     (e) Death of a Participant. In the event of the death of a Participant, any
of the cash value of assets in his or her Account or Accounts  under the Plan in
respect of which the Participant  shall have designated or be deemed pursuant to
Article XIV to have  designated  one or more  beneficiaries  hereunder  shall be
delivered to such  beneficiaries who shall survive the Participant in accordance
with such  designation  or  deemed  designation  (to the  extent  effective  and
enforceable  at the time of the  Participant's  death) and the provisions of the
Plan,  subject to subsection  7.4(j) and such regulations as the  Administration
Committee  from  time to time  may  prescribe,  provided,  however,  that if the
Trustee or the Administration Committee shall be in doubt as to the right of any
such
                                       VII-5

beneficiary  to  receive the cash value of any of such  assets,  the Trustee may
deliver  the  same  to  the  estate  of  the  Participant,   in  which  case the
Trustee, the several Participating  Companies,  the Administration Committee and
the several  members  thereof and  alternates for members shall not be under any
further liability to anyone. Except as hereinabove provided, in the event of the
death of a  Participant,  the cash  value of  assets  in his or her  Account  or
Accounts  under the Plan shall be delivered  to his or her estate.  Except as is
provided in the immediately following sentence of this Subsection,  in the event
of death of a Participant,  distribution of the  Participant's  Account shall be
made to such Participant's beneficiary or beneficiaries (or estate, if there are
no  beneficiaries),  hereunder  as  soon as  practicable  after  notice  of such
Participant's  death is received by the Company,  and the foregoing  shall apply
notwithstanding any withdrawal or distribution election in effect at time of the
death  of a  Participant.  Notwithstanding  the  provisions  of the  immediately
preceding sentence, effective September 1, 1998, or as soon as is

<PAGE>

administratively feasible thereafter, (a) if a Participant's beneficiary is the
Participant's  surviving  spouse, if the Participant  elected a distribution
schedule  which  had  commenced  by  the   Participant's   date  of  death,  the
Participant's Account shall continue to be paid to the surviving spouse pursuant
to such  schedule or, at the spouse's  election at any time,  in a lump sum, and
(b) if  distribution  of the  Participant's  Account had not commenced as of the
Participant's  date of death,  the surviving  spouse shall,  for purposes of the
distribution  requirements  and options under the Plan, be deemed a Participant;
except  that the  surviving  spouse  shall be deemed to attain age  seventy  and
one-half (70-1/2) on the date the Participant would have attained such age.

     7.4  Conditions Applicable to Withdrawals and Distributions.

     (a) Effective Date of  Withdrawal.  Except as is provided in Section 7.2(c)
for systematic withdrawals, each withdrawal shall be made as of any business day
(the last business day of any week if withdrawal includes assets from the Income
Fund), upon the  Participant's  request provided in such form and in such manner
and at such time as the Administration Committee shall specify. The assets being
withdrawn shall be delivered to the Participant as soon as practicable after the
effective date of the withdrawal.

     (b) Assets Delivered.  Upon and in accordance with a Participant's  request
for a  withdrawal  permitted  under the Plan,  there shall be  delivered  to the
Participant the assets in his or her After-Tax  Contributions  Account which are
attributable to his or her After-Tax  Contributions or Earnings  thereon,  or in
his or her Pre-Tax  Contribution  Account which are  attributable  to his or her
Pre-Tax  Contributions  or Earnings  thereon,  or in his or her Company Matching
Contributions  Account.  To the extent  that any amounts of assets in his or her
Company  Matching  Contributions  Account  were  credited  in  respect  of  such
After-Tax  Contributions  or Pre-Tax  Contributions,  the same not being  vested
shall be forfeited and shall be applied as provided in Article X hereof.

     (c) Distribution and Delivery.  Each  distribution  shall be made as of the
close of a  business  day (the  last  business  day of any week if  distribution
includes assets from the Income Fund) and the assets being  distributed shall be
delivered to the Participant as soon as practicable  after the effective date of
the distribution.

                                     VII-6

     (d) Form of Distribution from Ford Stock Fund and Associates Stock Fund.

     (i)  Whole Shares.  Subject to the  provisions  of Section 9.2 hereof,  and
          subject to such regulations as the Administration  Committee from time
          to time may prescribe, a Participant requesting a withdrawal or

<PAGE>

          required  to  receive  a distribution may direct the Trustee  to  make
          distribution  of the cash value of assets  invested  in the Ford Stock
          Fund or in the  Associates  Stock Fund in the form of whole  shares of
          Company Stock or Associates  Stock, as  appropriate,  and cash for any
          fraction of a share,  such withdrawal or distribution to be based on a
          price  per  share  equal  to the  market  value  of  Company  Stock or
          Associate  Stock at the close of the New York  Stock  Exchange  on the
          effective date of the withdrawal or  distribution.  The Participant so
          directing the Trustee shall pay all applicable transfer taxes incident
          to the withdrawal or distribution  of such shares by the Trustee,  and
          the  amount  thereof  may be  deducted  from the  payment  made by the
          Trustee to the Participant.  Notwithstanding the foregoing  provisions
          of  this  paragraph,   after  December  31,  1999,   distributions  of
          Associates  Stock shall be made only if and to the extent  required by
          the provisions of Section 411(d)(6) of the Code.

     (ii) Fractional  Interest.  Any  fractional  interest in a share of Company
          Stock or  Associates  Stock  shall not be subject to  distribution  or
          withdrawal.  Settlement for any fractional  interest in such security,
          upon distribution or withdrawal  thereof,  shall be made in cash based
          on the current market value or any applicable current redemption value
          of such security, as of the date of distribution or withdrawal, as the
          case may be.

     (e)  Forfeiture.  In the  case of a  distribution  of  assets  pursuant  to
Subsection  3.4(e)(5)  hereof  that  is  made  from  a  Participant's  After-Tax
Contribution  Account or Pre-Tax  Contribution  Account,  to the extent that any
portion of assets in the Participant's  Company Matching  Contributions  Account
had  been   credited  in  respect  of  the   Employee's   After-Tax  or  Pre-Tax
Contributions to which such assets are  attributable,  the same not being vested
shall be forfeited and shall be applied as provided in Article X hereof.

     (f)  Redeposits.  If a  Participant  makes  a  withdrawal  from  his or her
After-Tax Contributions Account or Pre-Tax Contributions Account pursuant to the
provisions  of Section 7.1 or 7.2 hereof and prior to the date on which  related
Company  Matching  Contributions  and Earnings thereon have vested as determined
pursuant  to  the  provisions  of  Section  5.1  hereof,  such  Participant  may
subsequently  elect to  return to the Plan in a lump sum in cash the value as of
the effective  date of withdrawal of the assets and cash  delivered  pursuant to
Section  7.l or 7.2 hereof  and  thereby  have  restored  to his or her  Company
Matching  Contributions  Account  assets  and cash  having a value  equal to the
value,  as of the effective date of withdrawal,  of the assets  attributable  to
Company Matching Contributions or Earnings thereon that had been forfeited.  Any
such  return  shall  be made not  later  than  the end of the  five-year  period
beginning with the effective date of withdrawal or, if the Participant ceases to
be employed by a Participating  Employer,  not later than the end of a period of
five
                                     VII-7

consecutive Plan Years, beginning with the Plan Year in which the termination
of employment occurred, during which the Participant is not employed on the
last day

<PAGE>

of each Plan Year.  For purposes of determining  whether a Participant has not
been  employed  for  five  consecutive  Plan  Years,  any year in which  the
Participant  Years,  any year in which the Participant is absent on the last day
of the year by reason of pregnancy of the  Participant,  birth of a child of the
Participant,  placement of a child with the  Participant in connection  with the
adoption  of such  child by such  Participant,  or for  purposes  of child  care
immediately following such birth or placement shall be disregarded.  Termination
of employment for purposes of this Subsection  7.4(f) shall mean, in the case of
a Participant who is laid off because of a reduction in force,  the later of the
date on which such layoff begins or the effective date of withdrawal pursuant to
the provisions of Section 7.1 or 7.2 hereof by such Participant.

     If any such  return is made on or before  December  31 of the year in which
the  effective  date of  withdrawal  occurs,  the cash  value of the  amount  so
returned  or so  restored  shall be  included  in the Plan Year  from  which the
withdrawal  was made and if made after such  December 31, in the Plan Year which
succeeds  the Plan  Year  from  which  withdrawal  was made by one year for each
December 31 that occurs on or after the  effective  date of the  withdrawal  and
prior to the date of such return.

     The amount of cash so returned and any assets  acquired  therewith shall be
treated as After-Tax  Contributions  for purposes of  determining  the extent to
which assets attributable to Company Matching  Contributions or Earnings thereon
have  vested  pursuant  to  Section  5.1  hereof,  subsequent  distributions  or
withdrawals  pursuant to Section 7.1 or 7.2 hereof,  reporting  to  Participants
pursuant to Subsection  10.7(a)  hereof and voting of Company Stock  pursuant to
Section 9.3 hereof.  The assets so restored shall be treated as  attributable to
Company Matching Contributions for all purposes of the Plan.

     The  cash  so  returned  shall  be  invested  in the  available  investment
elections as elected by the Participant.

     Upon such return, the restored assets shall vest and shall continue to vest
as provided in Section 5.1.

     (g) Direct Rollovers.

          1.   This section applies to distributions made on or after January 1,
               1993.  Notwithstanding  any provision of the Plan to the contrary
               that would otherwise  limit a  Participant's  election under this
               part,  a  Participant  may  elect,  at the time and in the manner
               prescribed by the Administration  Committee,  to have any portion
               of an eligible  rollover  distribution  that is equal to at least
               $500 paid directly to an eligible  retirement  plan  specified by
               the Participant in a direct rollover.

          2.   Eligible rollover distribution: An eligible rollover distribution
               is any  withdrawal or  distribution  of all or any portion of the
               balance to the credit of the Participant, except that an eligible
               rollover  distribution  does not include any distribution that is
               one of a series of substantially equal

<PAGE>

               periodic payments (not less frequently than annually) made for
                                                   VII-8

<PAGE>

               the life (or life  expectancy)  of the  distributee  or the joint
               lives  (or  joint  life  expectancies)  of  the  distributee  and
               distributee's  designated beneficiary,  or for a specified period
               of ten  years  or  more;  any  distribution  to the  extent  such
               distribution is required under Section 401(a)(9) of the Code; and
               the portion of any  distribution  that is not includible in gross
               income  (determined  without  regard  to the  exclusion  for  net
               unrealized appreciation with respect to employer securities); and
               any other  distribution(s)  that is reasonably  expected to total
               less than $200 during a year.

          3.   Eligible  retirement  plan:  An  eligible  retirement  plan is an
               individual  retirement account described in Section 408(a) of the
               Code,  an  individual  retirement  annuity  described  in Section
               408(b) of the Code, an annuity plan  described in Section  404(a)
               of the Code, or a qualified  plan  described in Section 401(a) of
               the  Code,  that  accepts  the  distributee's  eligible  rollover
               distribution.  However,  in  the  case  of an  eligible  rollover
               distribution  with respect to the surviving  spouse,  an eligible
               retirement plan is an individual retirement account or individual
               retirement annuity.

          4.   Direct  Rollover:  A direct  rollover is a payment by the Plan to
               the eligible retirement plan specified by the distributee.

     (h) Reduction for Loans.  For purposes of any  distribution  of assets in a
Participant's  Account pursuant to Section 7.3 hereof,  the cash value of assets
in the Participant's Account shall be reduced by the balance of any loan made to
such  Participant as provided in Article VI hereof and interest  thereon that is
unpaid at the effective date of such distribution.

     (i) Assets Held for Benefit of Alternate Payee. Assets held for the benefit
of an  alternate  payee  pursuant to a  qualified  domestic  relations  order as
defined  by  Section  414(p) of the Code and  Section  206(d) of ERISA  shall be
distributed  prior  to the  date on  which  assets  would  be  distributed  to a
Participant  if such  order so  requires;  provided  that  such  order  requires
distribution of all assets held for the benefit of such alternate payee.

     (j)  Amounts  Payable  to  Incompetents  or Minors.  If the  Administration
Committee  shall  find that any person to whom any  payment is payable  from the
Plan is unable to care for his or her affairs because of illness,  accident,  or
disability,  or is a minor, any payment due may be paid to the spouse,  child, a
parent,  or a brother or sister of such person, or to a trust for the benefit of
such  person,  or to a  conservator  approved by a court for the benefit of such
person (when such  conservator  is  supervised  or required to provide  periodic
accountings to the court or agency of the court), or to any person deemed by the
Administration  Committee  to have  incurred  expense for such person  otherwise
entitled  to payment  (unless a prior claim  therefor  shall have been made by a
duly appointed guardian, committee or other legal representative).  In addition,
the  Administration  Committee  may make  distributions  on  behalf of minors to
parties it

<PAGE>

deems appropriate under any Uniform Transfer to Minors Act. Any such payment
shall be a complete discharge of the liabilities of the Plan therefor.

     (k)  Forfeiture  Upon  Inability  to  Locate  or  Identify  Participant  or
Beneficiary.  In the event  that  distribution  to a  Participant  or his or her
beneficiary or beneficiaries cannot be made because the identity or location of
                                       VII-9
such Participant or such beneficiary or beneficiaries cannot be determined after
reasonable  efforts, and  if  the assets in such Participant's Account for that
reason  remain  undistributed  for  a  period of one year,  the  Administration
Committee  may direct  that the  assets in such  Participant's  Account  and all
further  benefits  with  respect  to such  person  shall  be  forfeited  and all
liability for the payment thereof shall terminate;  provided,  however,  that in
the event that the identity or location of the  Participant  or  beneficiary  is
subsequently  determined,  the value of the assets in such Participant's Account
at the date of  forfeiture  shall be paid by the  Company  to such  person  in a
single sum.  The value of the assets so forfeited  shall be applied,  as soon as
practicable, to reimburse the Company for its expense in administering the Plan.
For such purposes, the value of the assets shall be determined as of the date of
the forfeiture.

     (l)  Termination of  Employment.  For purposes of Sections 7.1, 7.2 and 7.3
hereof,  no termination  of employment by a Participant  shall be deemed to have
occurred in any instance

          (i)  where,  not later than 30 days after the  occurrence  of an event
               which  in the  absence  of  this  provision  would  constitute  a
               termination of his or her employment hereunder, he or she becomes
               regularly employed by an Affiliated Employer, or

          (ii) where the Participant shall have been laid off due to a reduction
               in force, or

          (iii)where  the  Participant  shall  have  been  released  due  to the
               Participant's continued disability, or

          (iv) where the Participant shall have been granted a military leave of
               absence, and either (A) the Participant's employment subsequently
               is reinstated  under then  applicable  personnel  policies of the
               employer or (B) within the period so provided for  reinstatement,
               the  Participant  either dies,  becomes  eligible for  Retirement
               pursuant to the provisions of any Retirement Plan, or

          (v)  where the Participant shall have become employed by a Subsidiary.

     7.5 Transfer of Assets to Savings Plan of a Subsidiary by Which Participant
is Employed.  Subject to such administrative  requirements as the Administration
Committee  shall from time to time  establish  and subject to  acceptance by the
transferee  plan, a Participant may elect to have transferred from the Plan all,
but  not  less  than  all,  amounts, either in the form of cash, Ford Stock, or,
prior

<PAGE>

to March 3, 1998,  Associates Stock,  in  such  Participant's Accounts under the
Plan to a defined contribution plan  (within the  meaning  of  Section 414(i) of
the Code) of  a  Subsidiary  where  such  Participant is employed at the time of
transfer; provided that such plan imposes limitations on the distribution of the
Partici- pant's Pre-Tax Contributions that are at  least  as  restrictive as the
restrictions of Section 7.1(a) hereof of this Plan.  Any nonvested assets in the
transferred Employee's Account  under  the  Plan  shall  be  fully  vested  upon
transfer of a Parti- cipant to a subsidiary and election by the Employee to have
amounts in the  Participant's  Accounts  under the Plan transferred to a defined
contribution  plan  of  such  Subsidiary.  Such an election may be made within a
period of one year following transfer of employment or,  if later, September 30,
1995.

                                        VII-10

                                  ARTICLE VIII
                                  ------------

                               Investment Options
                               ------------------

     8.1 Ford Stock Fund.  The Trustee shall  establish and  administer the Ford
Stock Fund in accordance with the following:

          (a)  Investments.

               For each Participant who elects pursuant to Section 4.1 hereof to
               have contributions  invested in the Ford Stock Fund or for whom a
               transfer  is made to the Ford Stock Fund as  provided  in Section
               4.2 hereof,  the Trustee  shall invest the sums so to be invested
               or  transferred  in  accordance  with  instructions  of a person,
               company,  corporation  or  other  organization  appointed  by the
               Company. The Trustee may be appointed for such purpose.

               The Ford  Stock  Fund shall be  invested  primarily  in shares of
               Company  Stock;  a small portion of the Fund shall be invested in
               cash  or cash  equivalent  or  other  short-term  investments  to
               provide  liquidity for daily activity.  It is expected that about
               one to two  percent of the total  assets in the Fund will be held
               in cash or cash equivalent or other short-term  investments,  but
               the  percentage  may be  higher  or  lower,  depending  upon  the
               expected liquidity  requirements of the Fund.  Investments of all
               or a portion of Ford Stock Fund assets may be made in any common,
               collective  or  commingled  fund  when,  in  the  opinion  of the
               Trustee,  such  investments  are consistent with the objective of
               the Ford Stock Fund.

          (b)  Ford Stock Fund Units.

               Participants  shall have no ownership in any particular  asset of
               the Ford Stock Fund.  The Trustee  shall be the sole owner of all
               Ford Stock Fund assets. Proportionate interests in the Ford

<PAGE>

               Stock Fund shall be expressed in Ford Stock Fund Units.  All Ford
               Stock Fund Units  shall be of equal  value and no Ford Stock Fund
               Unit shall have priority or preference over any other. Ford Stock
               Fund  Units  shall be  credited  by the  Trustee to  Accounts  of
               Participants as of each valuation date.

          (c)  Ford Stock Fund Unit Prices.

               The term "Ford Stock Fund Unit Price," as used herein, shall mean
               the  value  in  money  of an  individual  Ford  Stock  Fund  Unit
               expressed to the nearest cent.  The Ford Stock Fund Unit Price as
               of   October  1,  1995  was   $10.00,   as   determined   by  the
               Adminis-tration Committee. The number of Ford Stock Fund Units as
               of October 1, 1995 was determined by dividing the market value of
               shares of Company  Stock and cash  received  by the  Trustee  for
               investment in the Ford Stock Fund by such Ford Stock Fund

                                               VIII-1

               Unit Price.  Thereafter,  the Ford Stock Fund Unit Price shall be
               redetermined  as of the close of the New York Stock  Exchange  on
               each  business  day that is a trading  day of the New York  Stock
               Exchange.  The Ford Stock Fund Unit Price for each such  business
               day shall be  determined  by dividing  the net asset value of the
               Ford Stock Fund on such  business day by the number of Ford Stock
               Fund Units outstanding on such business day. Ford Stock Fund Unit
               Prices  shall  be   determined   before   giving  effect  to  any
               distribution or withdrawal and before crediting  contributions to
               Participants' Accounts effective as of any such business day. Net
               asset value of the Ford Stock Fund shall be computed as follows:

               (i)  Company  Stock shall be valued at the  closing  price on the
                    New York Stock  Exchange  on such  business  day,  or, if no
                    sales were made on that date,  at the  closing  price on the
                    next preceding day on which sales were made.

               (ii) All  other  assets of the Ford  Stock  Fund,  including  any
                    interest in a common,  collective or commingled  fund, shall
                    be  valued  at the  fair  market  value  as of the  close of
                    business on the valuation  date.  Fair market value shall be
                    determined by the Trustee in the reasonable  exercise of its
                    discretion,   taking  into  account  values  supplied  by  a
                    generally   accepted   pricing  or   quotation   service  or
                    quotations furnished by one or more reputable sources,  such
                    as  securities  dealers,  brokers,  or  investment  bankers,
                    values of comparable property,  appraisals or other relevant
                    information  and,  in the case of a  common,  collective  or

<PAGE>

                    commingled  fund,  fair market value shall be the unit value
                    of such fund for a date the same as the  valuation  date, or
                    as close thereto as practicable.

               (iii)Ford Stock Fund Units  credited  to  Participants'  Accounts
                    with respect to  Tax-Efficient  Savings  Contributions  made
                    during any month  shall be  credited  at the Ford Stock Fund
                    Unit Price determined as of the close of business on the day
                    that such  contributions  are  received by the Trustee or as
                    soon  thereafter  as is  practicable.  Ford Stock Fund Units
                    withdrawn or  distributed  shall be valued at the Ford Stock
                    Fund  Unit  Price  at the  close  of  business  on  the  day
                    coinciding  with the  effective  date of such  withdrawal or
                    distribution.

               (iv) Except  as is  otherwise  provided  in  directions  from the
                    Company,  or  dictated  by the  Trustee's  trust  accounting
                    conventions,   investment   transactions,   income  and  any
                    expenses chargeable to the Ford Stock Fund will be accounted
                    for on an accrual basis.

          (d)  Distribution and Withdrawal From Ford Stock Fund.

               The  cash  value  of  assets  in the  Ford  Stock  Fund  shall be
               distributed to Participants or may be withdrawn by Participants

                                                VIII-2

               only in accordance  with  Sections  7.1, 7.2 and 7.3 hereof.  All
               distributions  and  withdrawals  shall be in cash,  except that a
               Participant  making a withdrawal or receiving a distribution  may
               direct the Trustee to make such withdrawal or distribution in the
               form of whole shares of Company stock, based on the closing price
               on the New York  Stock  Exchange  on the  effective  date of such
               withdrawal or distribution.

          (e)  Registered Name.

               Securities  held in the Ford Stock Fund may be  registered in the
               name of the Trustee or its nominee.

          (f)  No Commission.

               No commission shall be charged to the Plan or any trust under the
               Plan in connection  with any  acquisition  by the Plan of Company
               Stock  from the  Company,  whether  by cash  purchase,  exchange,
               conversion or otherwise.

<PAGE>

     8.2.  Associates  Stock Fund.  Effective  April 1, 1997,  the Trustee shall
establish and through  December 31, 1999,  shall administer the Associates Stock
Fund in accordance with the following:

          (a)  Investments.  For each Participant who elects pursuant to Section
               4.1 hereof to have contributions invested in the Associates Stock
               Fund or for whom a transfer is made to the Associates  Stock Fund
               as provided in Section 4.2 hereof,  the Trustee  shall invest the
               sums  so  to  be  invested  or  transferred  in  accordance  with
               instructions   of  a  person,   company,   corporation  or  other
               organization  appointed  by  the  Company.  The  Trustee  may  be
               appointed for such purpose.

               Investments  shall be made  primarily  in  shares  of  Associates
               Stock;   a  small   portion   shall  be  invested  in  short-term
               investments  to  provide  liquidity  for  daily  activity.  It is
               expected  that about one or two  percent of the Fund will be held
               in short-term  investments,  but the  percentage may be higher or
               lower,  depending upon the expected liquidity requirements of the
               Fund.

               Investments  of all or a portion of Associates  Stock Fund assets
               may be made in any common, collective or commingled fund when, in
               the opinion of the Trustee,  such investments are consistent with
               the objective of the Associates Stock Fund.

          (b)  Associates Stock Fund Units. Participants shall have no ownership
               in any particular asset of the Associates Stock Fund. The Trustee
               shall be the sole  owner of all  Associates  Stock  Fund  assets.
               Proportionate  interests  in the  Associates  Stock Fund shall be
               expressed in Associates  Stock Fund Units.  All Associates  Stock
               fund Units shall be of equal value and no

                                             VIII-3

               Associates Stock Fund Unit shall have priority or preference over
               any other.  Associates  Stock Fund Units shall be credited by the
               Trustee to Accounts of Participants as of each valuation date.

          (c)  Associates  Stock Fund Unit Prices.  The term  "Associates  Stock
               Fund Unit Price," as used  herein,  shall mean the value in money
               of an  individual  Associates  Stock Fund Unit  expressed  to the
               nearest cent. The Associates Stock Fund Unit Price as of April 1,
               1997 was $10.00, as established by the Administration  Committee.
               Thereafter,  the  Associates  Stock  Fund Unit Price has been and
               shall be  redetermined  at the end of each business day that is a
               trading day of the New York Stock Exchange.  The Associates Stock
               Fund Unit Price for each such business day shall

<PAGE>

               be  determined  by dividing the net asset value of the  Associate
               Stock Fund on such business day by the number of Associates Stock
               Fund Units  outstanding  on such business day.  Associates  Stock
               Fund Unit Prices shall be determined  before giving effect to any
               distribution or withdrawal and before crediting  contributions to
               Participants' Accounts effective as of any such business day. Net
               asset  value of the  Associates  Stock Fund shall be  computed as
               follows:

               (i)  Associates Stock shall be valued at the closing price on the
                    New York Stock  Exchange  on such  business  day,  or, if no
                    sales were made on that date,  at the  closing  price on the
                    next preceding day on which sales were made.

               (ii) All other assets of the Associates Stock Fund, including any
                    interest in a common,  collective or commingled  fund, shall
                    be  valued  at the  fair  market  value  as of the  close of
                    business on the valuation  date.  Fair market value shall be
                    determined by the Trustee in the reasonable  exercise of its
                    discretion,   taking  into  account  values  supplied  by  a
                    generally   accepted   pricing  or   quotation   service  or
                    quotations furnished by one or more reputable sources,  such
                    as  securities  dealers,  brokers,  or  investment  bankers,
                    values of comparable property,  appraisals or other relevant
                    information  and,  in the case of a  common,  collective  or
                    commingled  fund,  fair market value shall be the unit value
                    of such fund for a date the same as the  valuation  date, or
                    as close thereto as practicable.

               (iii)Associates   Stock  Fund  Units  credited  to  Participants'
                    Accounts with respect to Pre-Tax  Contributions  made during
                    any month  shall be credited  at the  Associates  Stock Fund
                    Unit Price determined as of the close of business on the day
                    that such  contributions  are  received by the Trustee or as
                    soon  thereafter as is  practicable.  Associates  Stock Fund
                    Units  withdrawn  or  distributed  shall  be  valued  at the
                    Associates Stock Fund Unit Price at the close of business on
                    the  day   coinciding   with  the  effective  date  of  such
                    withdrawal or distribution.

                                    VIII-4

               (iv) Except  as is  otherwise  provided  in  directions  from the
                    Company,  or  dictated  by the  Trustee's  trust  accounting
                    conventions,   investment   transactions,   income  and  any
                    expenses  chargeable  to the  Associates  Stock Fund will be
                    accounted for on an accrual basis.

<PAGE>

          (d)  Distribution  and Withdrawal from Associates Stock Fund. The cash
               value of assets in the Associates Stock Fund shall be distributed
               to  Participants  or may be  withdrawn  by  Participants  only in
               accordance   with   Sections   7.l,  7.2  and  7.3  hereof.   All
               distributions  and  withdrawals  shall be in cash,  except that a
               Participant  making a withdrawal or receiving a distribution  may
               direct the Trustee to make such withdrawal or distribution in the
               form of whole shares of  Associates  Stock,  based on the closing
               price on the New York Stock  Exchange  on the  effective  date of
               such withdrawal or distribution.

          (e)  Registered Name. Securities held in the Associates Stock fund may
               be registered in the name of the Trustee or its nominee.

          (f)  Cessation of Associates  Stock Fund.  The  Associates  Stock Fund
               shall  cease to  operate  and  shall  cease  to be an  investment
               election  under  the  Plan at the  close  of the New  York  Stock
               Exchange on December  31, 1999,  and all assets  remaining in the
               Associate  Stock Fund as of the close of the Exchange on such day
               shall be  transferred  to and converted  into  investments in the
               Ford  Stock  Fund  as  soon  thereafter  as is  practicable.  The
               Trustee,  upon  written  directions  from the  Secretary  or Vice
               President and Treasurer of the Company,  shall convert the assets
               in the  Associates  Stock  Fund into cash or cash  equivalent  or
               other short-term investments in an orderly manner in anticipation
               of such transfer to the Ford Stock Fund.

     8.3   Nondisclosure   Requirements.   The  Trustee  shall  agree  that  all
information  concerning  a  Participant's  investment  in the Ford Stock Fund or
Associates Stock Fund, exchanges in or out of the funds, or the voting of shares
of stock  represented  by a  Participant's  proportionate  interest in the funds
shall not be disclosed to any party except to the extent necessary to administer
the Plan. The  Administration  Committee  shall be responsible for ensuring that
the  provisions  of this  subparagraph  are  complied  with and  shall  have the
authority to determine,  in good faith, when and what extent disclosure shall be
necessary in administering the Plan.

     8.4 Common Stock Fund.  The Trustee  shall  establish  and  administer  the
Common Stock Fund in accordance with the following:

          (a)  Investments.  For each Participant who elects pursuant to Section
               4.1 hereof to have  Contributions  invested  in the Common  Stock
               Fund or for whom a transfer  is made to the Common  Stock Fund as
               provided in Section 4.2 hereof, the Trustee shall invest the sums

                                                VIII-5

               so to be invested or transferred in accordance with instructions

<PAGE>

               of a person, company, corporation or other organization appointed
               by the Company. The Trustee may be appointed for such purpose.

               Investments  shall  be  made  with  the  objective  of  providing
               investment results that closely correspond to the price and yield
               performance of the publicly  traded Company Stocks (i) of the 500
               corporations  included in Standard  and Poor's 500 Index and (ii)
               of the  corporations  having  capitalizations  of at  least  $100
               million as publicly  reported  from time to time and not included
               in the Standard and Poor's 500 Index. Assets shall be invested in
               the  Company  Stock  of  each of such  corporations  in the  same
               percentage weighting as the capitalization of such corporation is
               as a  percentage  of the total of the  capitalizations  of all of
               such corporations.

               Investments  of all or a portion of Common  Stock Fund assets may
               be made in any common, collective or commingled fund when, in the
               opinion of the Trustee,  such investments are consistent with the
               objective of the Common Stock Fund. A portion of the funds of the
               Common  Stock Fund may be held in cash or invested in  short-term
               obligations when deemed advisable by the Trustee.  Securities may
               be sold without regard to the length of time they have been held.
               A different market index of publicly traded Company Stocks may be
               selected  by the  Company for  investments  of Common  Stock Fund
               assets in the event Standard and Poor's Corporation  discontinues
               its 500 Index or for other reasons.

          (b)  Common Stock Fund Units.  Participants shall have no ownership in
               any particular  asset of the Common Stock Fund. The Trustee shall
               be the sole owner of all Common Stock Fund assets.  Proportionate
               interests  in the Common  Stock Fund shall be expressed in Common
               Stock Fund Units.  All Common  Stock Fund Units shall be of equal
               value and no  Common  Stock  Fund Unit  shall  have  priority  or
               preference  over any other.  Common  Stock  Fund  Units  shall be
               credited by the Trustee to  accounts of  Participants  as of each
               valuation date.

          (c)  Common Stock Fund Unit Prices.  The term "Common  Stock Fund Unit
               Price,"  as used  herein,  shall  mean  the  value in money of an
               individual  Common Stock Fund Unit expressed to the nearest cent.
               The Common  Stock  Fund Unit Price as of March 31,  1986 was $10.
               Thereafter,  the Common  Stock Fund Unit Price has been and shall
               be  redetermined  each  business day that is a trading day on the
               New York Stock  Exchange.  The  Common  Stock Fund Unit Price for
               each such  business day shall be  determined  by dividing the net
               asset value of the Common Stock Fund on such  business day by the
               number of Common Stock Fund Units  outstanding  on such  business
               day.  Common  Stock Fund Unit Prices shall be  determined  before
               giving  effect  to any  distribution  or  withdrawal  and  before

<PAGE>

               crediting contributions to Participants' Accounts effective as of
               any such  business  day. Net asset value of the Common Stock Fund
               shall be computed as follows:

                                                   VIII-6

               (i)  Securities  listed on a  national  stock  exchange  shall be
                    valued at the closing price on the valuation date, or, if no
                    sales were made on that date,  at the  closing  price on the
                    next  preceding day on which sales were made, in either case
                    as reported on the primary exchange.

               (ii) Securities traded only in over-the-counter  markets shall be
                    valued at the mean of the  closing  bid and asked  prices as
                    listed in a  publication  or  publications  selected  by the
                    Trustee for the valuation  date,  or the next  preceding day
                    for which such prices are  available,  if not  available for
                    the valuation date.

               (iii)All other  assets of the Common  Stock Fund,  including  any
                    interest in a common,  collective or commingled  fund, shall
                    be  valued  at the  fair  market  value  as of the  close of
                    business on the valuation  date.  Fair market value shall be
                    determined by the Trustee in the reasonable  exercise of its
                    discretion,   taking  into  account  values  supplied  by  a
                    generally   accepted   pricing  or   quotation   service  or
                    quotations furnished by one or more reputable sources,  such
                    as  securities  dealers,  brokers,  or  investment  bankers,
                    values of comparable property,  appraisals or other relevant
                    information  and,  in the case of a  common,  collective  or
                    commingled  fund,  fair market value shall be the unit value
                    of such fund for a date the same as the  valuation  date, or
                    as close thereto as practicable.

               (iv) Common Stock Fund Units credited to  Participants'  Accounts
                    with   respect  to   After-Tax   Contributions   or  Pre-Tax
                    Contributions made during any month shall be credited at the
                    Common Stock Fund Unit Price  determined  as of the close of
                    business on the day that  contributions  are received by the
                    Trustee  or as soon  thereafter  as is  practicable.  Common
                    Stock Fund Units withdrawn or distributed shall be valued at
                    the Common Stock Fund Unit Price at the close of business on
                    the effective date of such withdrawal or distribution.

<PAGE>

               (v)  Investment transactions,  income and any expenses chargeable
                    to the Common Stock Fund will be accounted for on an accrual
                    basis.

     (d)  Distribution  and Withdrawal From Common Stock Fund. The cash value of
          assets in the Common Stock Fund shall be distributed  to  Participants
          or may be withdrawn by  Participants  only in accordance with Sections
          7.1, 7.2 and 7.3 hereof.  All  distributions  and withdrawals shall be
          only in cash.

     (e)  Voting Stock.  The Trustee shall be entitled,  itself or by proxy,  to
          vote in its  discretion all shares of voting stock in the Common Stock
          Fund.

                                      VIII-7

     (f)  Registered  Name.  Securities  held in the  Common  Stock  Fund may be
          registered in the name of the Trustee or its nominee.

     8.5 Bond Fund. The Trustee shall  establish and administer the Bond Fund in
accordance with the following:

     (a)  Investments.  For each  Participant who elects pursuant to Section 4.1
          hereof to have  Contributions  invested in the Bond Fund or for whom a
          transfer  is made to the Bond Fund as  provided in Section 4.2 hereof,
          the Trustee shall invest the sums so to be invested or  transferred in
          accordance  with  instructions  of a person,  company,  corporation or
          other  organization  appointed  by the  Company.  The  Trustee  may be
          appointed for such purpose.

          Investments  shall  be made with the objective of providing investment
          results that closely correspond to the price and yield  performance of
          the  Lehman  Brothers  Aggregate  Bond  Index  (the "Lehman  Aggregate
          Index").  Assets  shall  be  invested in a portfolio of Treasury notes
          and bonds,  corporate  notes  and bonds and mortgage-backed securities
          and other securities that,  in the aggregate,  typify  the  securities
          that are included in the Lehman Aggregate Index.

          Investments of all or a portion of Bond Fund assets may be made in any
          common, collective or commingled fund maintained by the Trustee or the
          person,  company,  corporation or other organization  appointed by the
          Company  to manage  all or a portion  of the Bond  Fund  when,  in the
          opinion of the Trustee or the person,  company,  corporation  or other
          organization  appointed  by the  Company to manage all or a portion of
          the Bond Fund,  such  investments are consistent with the objective of
          the Bond Fund.  To the extent that assets are so invested,  they shall
          be subject to the terms and conditions of the  Declaration of Trust of
          such common,  collective or  commingled  fund, as amended from time to
          time.  A portion  of the funds of the Bond Fund may be held in cash or
          invested

<PAGE>

          in  short-term  obligations  when  deemed  advisable  by the  Trustee.
          Securities  may be sold without regard to the length of time they have
          been held. A different  market  index of publicly  traded fixed income
          securities may be selected by the Company for investments of Bond Fund
          assets in the event the Lehman  Aggregate Index is discontinued or for
          other reasons.

     (b)  Bond  Fund  Units.   Participants  shall  have  no  ownership  in  any
          particular asset of the Bond Fund. The Trustee shall be the sole owner
          of all Bond  Fund  assets.  Proportionate  interests  in the Bond Fund
          shall be expressed in Bond Fund Units. All Bond Fund Units shall be of
          equal value and no Bond Fund Unit shall have  priority  or  preference
          over any other.  Bond Fund Units  shall be  credited by the Trustee to
          Accounts of Participants as of each valuation date.

     (c)  Bond Fund Unit  Prices.  The term  "Bond  Fund  Unit  Price,"  as used
          herein,  shall mean the value in money of an individual Bond Fund Unit
          expressed to the nearest cent. The Bond Fund Unit Price as of January

                                               VIII-8
          1, 1993 was $10.  Thereafter,  the Bond  Fund Unit  Price has been and
          shall be  redetermined  each business day that is a trading day on the
          New York  Stock  Exchange.  The Bond  Fund  Unit  Price  for each such
          business  day shall be  determined  by dividing the net asset value of
          the Bond Fund on such  business  day by the  number of Bond Fund Units
          outstanding  on such  business  day.  Bond Fund Unit  Prices  shall be
          determined  before giving effect to any distribution or withdrawal and
          before crediting  contributions to Participants' accounts effective as
          of any such  business  day.  Net asset value of the Bond Fund shall be
          computed as follows:

          (i)  All assets of the Bond Fund,  including any interest in a common,
               collective or commingled fund, shall be valued at the fair market
               value as of the close of business  on the  valuation  date.  Fair
               market value shall be determined by the Trustee in the reasonable
               exercise of its  discretion,  taking into account values supplied
               by  a  generally   accepted  pricing  or  quotation   service  or
               quotations  furnished by one or more reputable  sources,  such as
               securities dealers,  brokers,  or investment  bankers,  values of
               comparable  property,  appraisals or other  relevant  information
               and, in the case of a common, collective or commingled fund, fair
               market  value shall be the unit value of such fund for a date the
               same as the valuation date, or as close thereto as practicable.

          (ii) Bond Fund Units credited to  Participants'  Accounts with respect
               to After-Tax  Contributions or Pre-Tax  Contributions made during
               any  month  shall  be  credited  at  the  Bond  Fund  Unit  Price

<PAGE>

               determined  as of the  close of  business  on the day  that  such
               contributions  are received by the Trustee or as soon  thereafter
               as is practicable. Bond Fund Units withdrawn or distributed shall
               be valued at the Bond Fund Unit Price at the close of business on
               the effective date of such withdrawal or distribution.

          (iii)Investment  transactions,  income and any expenses  chargeable to
               the Bond Fund will be accounted for on an accrual basis.

     (d)  Distribution  and  Withdrawal From Bond Fund. The cash value of assets
          in  the  Bond  Fund  shall  be  distributed  to Participants or may be
          withdrawn  by Participants only  in accordance with Sections  7.1, 7.2
          and 7.3 hereof.  All  distributions  and withdrawals  shall be only in
          cash.

     (e)  Registered Name. Securities held in the Bond Fund may be registered in
          the name of the Trustee or its nominee.

     8.6  Interest Income Fund.

          The Trustee shall establish and manage the Interest Income Fund in
          accordance with the following:

          (a)  Investments.

               For each Participant who elects pursuant to Section 4.1 hereof to
               have Contributions invested in the Interest Income Fund or
                                                     VIII-9

               for whom a transfer  is made as  provided  in Section 4.2 hereof,
               the  Trustee   shall  invest  the  sums  so  to  be  invested  or
               transferred  in  accordance  with  instructions  of one  or  more
               persons, companies, corporations or other organizations appointed
               by the Company. The Trustee may be appointed for such purpose.

               Investments  shall be made  with the  objective  of  providing  a
               broadly  diversified,  stable value investment in which the value
               of the Participant's investment does not fluctuate except for the
               addition of interest credited to the Participant's  Account.  The
               interest rate payable on assets in the Interest  Income Fund will
               be declared  annually in advance and may be changed each calendar
               year.

               The Trustee shall invest the contributions, and Earnings thereon,
               received for the Accounts of Participants  who elect to invest in
               the Interest  Income Fund according to the advice of the Interest
               Income Fund  Advisor.  Assets in such Fund shall be invested in a
               well diversified portfolio of fixed income

<PAGE>

               securities,   including   investment   contracts  with  insurance
               companies  and  other  organizations,   individual  fixed  income
               securities,   and  units  in  fixed  income   collective   funds.
               Securities  may be sold without regard to the length of time they
               have been held.  Investments  shall be subject to such additional
               restrictions  as from  time  to time  shall  be  provided  in the
               agreement  designating  or  appointing  the Interest  Income Fund
               Advisor.  To the extent  that the actual  return on assets in the
               Fund is more or less than the  declared  rate of interest for the
               current  year,  the  rate  of  interest  declared  and  paid  for
               succeeding years will be adjusted upward or downward.

               Investments  of all or a portion of  Interest  Income Fund assets
               may  be  made  in  any  common,  collective  or  commingled  fund
               maintained by the Trustee or any person, company,  corporation or
               other  organization  appointed  by the Company to manage all or a
               portion of the Interest  Income Fund when,  in the opinion of the
               Trustee or the person, company, corporation or other organization
               appointed  by the  Company  to  manage  all or a  portion  of the
               Interest  Income Fund,  such  investments are consistent with the
               objective of the Interest  Income Fund. To the extent that assets
               are  so  invested,  they  shall  be  subject  to  the  terms  and
               conditions of the Declaration of Trust of such common, collective
               or  commingled  fund,  as amended from time to time. A portion of
               the  funds  of the  Interest  Income  Fund may be held in cash or
               invested in short-term  obligations  when deemed advisable by the
               Trustee or the person, company, corporation or other organization
               appointed  by the  Company  to  manage  all or a  portion  of the
               Interest Income Fund.

          (b)  Crediting of Interest.

               The Trustee periodically shall credit to the appropriate Interest
               Income Fund Accounts of Participants interest at the

                                                   VIII-10

               rate declared prior to the commencement of each calendar year.

          (c)  Reduction in Fund Value. In the event that the total value of the
               Interest  Income  Fund is reduced  for any reason  (other than by
               reason  of  distributions  to  or  withdrawals  or  transfers  by
               Participants  pursuant to the Plan), the Trustee shall reduce the
               total  amount  credited to the Account of each  Participant  with
               respect to the Interest Income Fund by a proportionate amount.

<PAGE>

          (d)  Distribution From Fund and Withdrawals from Interest Income Fund.

               Cash  credited  to  Participants'  Accounts  with  respect to the
               Interest  Income Fund shall be distributed to Participants or may
               be withdrawn by  Participants  only in  accordance  with Sections
               7.1, 7.2 and 7.3 hereof.  All distributions and withdrawals shall
               be only in cash.

          (e)  Interest Income Fund Value.

               The term  "Value" as used herein shall mean the value in money of
               the net assets in the Interest  Income Fund. The Interest  Income
               Fund  Value  shall  be  determined  each  business  day that is a
               trading day on the New York Stock Exchange.  Interest Income Fund
               Values  shall  be   determined   before   giving  effect  to  any
               distribution or withdrawal and before crediting  contributions or
               transfers  to  Participants'  Accounts  effective  as of any such
               business  day.  The Value of the  Interest  Income  Fund shall be
               computed as follows:

               (i)  All assets of the  Interest  Income  Fund shall be valued at
                    the fair  market  value as of the close of  business  on the
                    valuation date. Fair market value shall be determined by the
                    Trustee in the reasonable exercise of its discretion, taking
                    into account values supplied by a generally accepted pricing
                    or quotation service or quotations  furnished by one or more
                    reputable sources,  such as securities dealers,  brokers, or
                    investment   bankers,   values   of   comparable   property,
                    appraisals or other relevant information.

               (ii) Investment transactions,  income and any expenses chargeable
                    to the  Interest  Income  Fund will be  accounted  for on an
                    accrual basis.

          (f)  Registered Name.

               Securities  held in the Interest Income Fund may be registered in
               the name of the Trustee or its nominee.

                                        VIII-11

     8.7  Income Fund.

          (a)  Subaccounts. For each Participant who elected prior to January 1,
               1996   pursuant   to  Section   4.1  hereof  to  have   After-Tax
               Contributions  or Pre-Tax  Contributions  invested  in the Income

<PAGE>

               Fund or for whom a transfer  was made prior to January 1, 1996 to
               the Income Fund as  provided  in Section 4.2 hereof,  the Trustee
               established an Income Fund subaccount or subaccounts, which shall
               continue  to be parts of the  Participant's  Accounts  under  the
               Plan,  and credit to such  subaccounts  the sums  transferred  or
               invested under such Participant's election or elections.

          (b)  Crediting Accounts.  The Trustee periodically shall credit to the
               appropriate   Income   Fund   subaccount   of  such   Participant
               proportionate  amounts  of  any  increases  in the  total  amount
               credited  to the  account  of the  Trustee  under the  applicable
               Income Fund Contract (other than increases due to payments by the
               Trustee to the Income Fund Manager).

          (c)  Reduction  in Fund  Value.  In the event  that the  total  amount
               credited  at any time to the  account  of the  Trustee  under the
               applicable  Income Fund Contract is reduced for any reason (other
               than by reason of  payments  by the  Income  Fund  Manager to the
               Trustee  for  distributions  to or  withdrawals  by  Participants
               pursuant to the Plan),  the Trustee shall reduce the total amount
               credited to the subaccount or subaccounts of each  Participant by
               a proportionate amount.

          (d)  Distribution  and Withdrawals  from Income Fund. Cash credited to
               Participants'  subaccounts  with respect to the Income Fund shall
               be   distributed   to   Participants   or  may  be  withdrawn  by
               Participants  only in  accordance  with Sections 7.1, 7.2 and 7.3
               hereof.

          (e)  Income  Fund  Contracts.  The  Company  entered  into one or more
               Income Fund  Contracts  with one or more  insurance  companies or
               other  organizations  for  Participants  electing the Income Fund
               option provided in this Subsection 8.7.

     8.8  Mutual  Funds.  Each of the  Mutual  Funds  offered  as an  investment
election  under the Plan shall be described in a prospectus for each such Mutual
Fund and each such prospectus  shall be provided to each Participant of the Plan
who requests such prospectus.

     8.9 Investment of Dividends,  Interest,  Etc.  Except as is provided in the
following  paragraph of this Section 8.9,  cash  dividends,  interest,  and cash
proceeds of any other  distribution in respect of any investment funds available
under this Plan shall be invested in the  respective  Funds giving rise to same;
except that,  commencing with respect to Company Stock with the dividend payable
in the third  quarter of 1996,  and  commencing  with the  establishment  of the
Associates Stock Fund but ceasing with respect to that Fund as of March 3, 1998,
all or a portion of cash  dividends paid on Company stock held in the Ford Stock
Fund that have not been in the Plan continuously since January 1, 1989 and

                                      VIII-12

<PAGE>

all of the cash dividends on the Associates  Stock in the Associates Stock Fund
shall  be  distributed  in  accordance  with the provisions of Subsection 7.3(d)
to  Participants  who have  elected  to invest  in the Ford  Stock  Fund  and/or
Associates  Stock  Fund,  unless  such  Participants  elect not to receive  such
dividends.

Cash dividends on Company Stock in the Ford Stock Fund that are not distributed
to Participants shall be invested on behalf of the Participants entitled thereto
in the Ford Stock Fund through the purchase of additional Ford Stock Fund Units.
Until March 3, 1998,  cash dividends on Associates Stock in the Associates Stock
Fund  that are  not  distributed  to Participants shall be invested on behalf of
the Participants  entitled  thereto  in  the  Associates  Stock Fund through the
purchase of additional Associates  Stock  Fund  Units.  Cash dividends  paid  on
Associates Stock in the Associates Stock Fund after  March  2,  1998,  shall  be
invested on behalf of Participants  who have investments in the Associates Stock
Fund in the Ford Stock  Fund through the  purchase of additional Ford Stock Fund
Units.

<PAGE>

                                     VIII-13

<PAGE>

                                   ARTICLE IX
                                   ----------

                                     Trustee
                                     -------

     9.1 Appointment of Trustee.  The Company, by action of its Vice President -
Human  Resources,  Vice  President and  Treasurer  and Vice  President - General
Counsel shall appoint one or more  individuals or corporations to act as Trustee
under the Plan,  and at any time may remove the  Trustee and appoint a successor
Trustee.  The  Company  may,  without  reference  to or action by any  Employee,
Participant or beneficiary or any other Participating Employer,  enter into such
Trust  Agreement  with the Trustee and from time to time enter into such further
agreements with the Trustee or other parties, make such amendments to such Trust
Agreement or further agreements and take such other steps and execute such other
instruments  as the  Company  in its  sole  discretion  may  deem  necessary  or
desirable to carry the Plan into effect or to facilitate its administration.

     The Trustee and the Company may by mutual  agreement in writing arrange for
the  delegation  by the Trustee to the  Committee of any of the functions of the
Trustee,  except the custody of assets,  the voting of Company Stock held by the
Trustee and the purchase and sale or redemption of securities.

     9.2  Purchases  of  Securities  by the  Trustee.  After-Tax  Contributions,
Pre-Tax Contributions and Company Matching Contributions and Earnings thereon in
the  Accounts  of  Participants  shall be  invested  by the  Trustee  as soon as
practicable after receipt thereof by the Trustee.

     The shares of Company  Stock from time to time required for purposes of the
Plan shall be  purchased  by the Trustee  from the  Company,  or from such other
person or  corporation,  on such stock exchange or in such other manner,  as the
Company  by  action  of its  Board  of  Directors  or any  committee  or  person
designated by the Board of Directors,  from time to time in its sole  discretion
may designate or prescribe,  provided,  however,  that except as required by any
such  designation  by the Board of Directors,  such shares shall be purchased by
the Trustee from such source and in such manner as the Trustee from time to time
in its sole  discretion may determine.  Any shares so purchased from the Company
may be either treasury stock or newly-issued  stock, and shall be purchased at a
price per share equal to the closing price on the New York Stock Exchange on the
date of purchase.

     The shares of  Associates  Stock from time to time required for purposes of
the Plan shall be purchased  by the Trustee  from such  persons or  corporations
(other than Associates First Capital Corporation), on such stock exchange and in
such manner as shall be prescribed in the Trust Agreement.

     Anything  herein to the  contrary  notwithstanding,  the Trustee  shall not
invest any of the funds in the Ford  Stock Fund in any shares of Company  stock,
unless at the time of  purchase  thereof by the  Trustee  such  shares  shall be
listed on the New York Stock Exchange.

<PAGE>

     The shares of Company Stock and Associates  Stock held by the Trustee under
the Plan shall be  registered  in the name of the  Trustee or its  nominee,  but
shall not be voted by the Trustee or such nominee  except as provided in Section
9.3 hereof.

                                      IX-1

     In the event that any  option,  right or warrant  shall be  received by the
Trustee on Company Stock or Associates  Stock,  the Trustee shall sell the same,
at public or private  sale and at such price and upon such other terms as it may
determine,  unless the  Committee  shall  determine  that such option,  right or
warrant  should be exercised,  in which case the Trustee shall exercise the same
upon such terms and conditions as the Committee may prescribe.

     9.3  Voting of Company Stock and Associates Stock.  The Trustee,  itself or
by its nominee,  shall be entitled to vote,  and shall vote,  shares of Company
Stock  and  Associates  Stock  represented by the proportionate interests in the
Accounts of Participants in the Ford Stock Fund,  the Associates  Stock Fund, or
otherwise held by the Trustee under the Plan as follows:

     A.   The Company shall adopt reasonable  measures to notify the Participant
          of the date and  purposes  of  each  meeting  of  stockholders  of the
          Company or the Associates First Capital  Corporation  at which holders
          of shares of Company  Stock or  Associates  Stock  shall  be  entitled
          to  vote,  and to  request  instructions  from the  Participant to the
          Trustee as to the voting at such meeting of full shares of stock and
          fractions thereof represented  by  the proportionate  interests of the
          Participant  in the  Ford  Stock  Fund or Associates Stock Fund.

     B.   In each case, the Trustee,  itself or by proxy, shall vote full shares
          of  stock  and  fractions  thereof  represented  by the  proportionate
          interests  of the  Participant  in the Ford Stock  Fund or  Associates
          Stock fund in accordance with the instructions of the Participant.

     C.   If prior to the time of such meeting of stockholders the Trustee shall
          not have received  instructions from the Participant in respect of any
          shares  of  Company  Stock  or  Associates  Stock  represented  by the
          proportionate  interests of the  Participant in the Ford Stock Fund or
          Associates  Stock fund,  the Trustee  shall vote  thereat  such shares
          proportionately  in the same manner as the Trustee  votes  thereat the
          aggregate  of all  shares of Company  Stock with  respect to which the
          Trustee has received instructions from Participants.

<PAGE>

                                     IX-2

<PAGE>

                                   ARTICLE X
                                   ---------

            Application of Forfeited Company Matching Contributions
            -------------------------------------------------------

     Any of  the  assets  attributable  to  Company  Matching  Contributions  or
Earnings  thereon which shall be forfeited in a Participant's  Company  Matching
Contributions  Account  pursuant to the  provisions  of Sections 5.2, 7.1 or 7.2
hereof,  shall be  applied,  as soon as  practicable,  first,  to the payment of
certain  expenses of the Plan  incurred on or after July 1, 1981, as provided in
Section 11.5 hereof,  and  thereafter,  to the extent  available,  to reduce the
amount  of any  Company  Matching  Contributions  under the Plan or, if the Plan
shall be  terminated,  the cash value of any of such assets not so applied  from
time to time  shall be  credited  ratably  to the  respective  Company  Matching
Contributions Accounts of the Participants in the Plan as of the day immediately
following the date of forfeiture.  Notwithstanding the provisions of Section 5.2
hereof,  any of the  assets so  credited  to a  Participant's  Company  Matching
Contributions  Account,  and  any  increment  thereof,  shall,  at the  time  of
distribution  or withdrawal  thereof,  be deemed to have vested in such account.
The cash value of assets  applied to reduce the amount of the  Company  Matching
Contribution for any month, or applied to the payment of certain expenses of the
Plan,  pursuant to the  provisions  of this Article X, shall be valued as of the
close of business on the relevant date.

<PAGE>

                                       X-1

                                   ARTICLE XI
                                   ----------

                          Operation and Administration
                          ----------------------------

     11.1 Named Fiduciary. Pursuant to ERISA the Company shall be the sole named
fiduciary  with  respect to the Plan and shall  have  authority  to control  and
manage the operation and administration of the Plan.

     11.2 Power of Company Officers and Designees.

     (a)  Appointment  and Renewal of Trustees  and  Investment  Advisors,  Plan
          Amendments,  and  Suspension  of  Plan.  The  Vice  President  - Human
          Resources,  the Vice  President and Treasurer and the Vice President -
          General Counsel shall have the authority, on behalf of the Company, to
          appoint and remove Trustees and investment advisors under the Plan, to
          approve policies  relating to the allocation of contributions  and the
          distribution  of assets among  Trustees and  investment  advisors,  to
          approve  Plan  amendments  and to  modify  the  Plan  or  suspend  the
          operation of any provisions of the Plan; provided,  however,  only the
          Board of Directors shall have authority to amend  provisions  relating
          to the extent of Company  Matching  Contributions  and the offering of
          Company Stock as an investment election.

     (b)  Trust  Agreements,   Investment  Advisor  Agreements,  Etc.  The  Vice
          President and  Treasurer  shall be authorized on behalf of the Company
          to contract and enter into ancillary  agreements with the Trustees and
          investment advisors under the Plan and to determine the form and terms
          of the Trust Agreements, investment advisor agreements, and agreements
          ancillary  thereto,  to allocate  contributions  and distribute assets
          among  Trustees  and  investment  advisors,  and to appoint an auditor
          under the Plan, and shall have authority to designate other persons to
          carry out specific responsibilities in connection therewith; provided,
          however,  that such actions shall be consistent with ERISA, the policy
          of the  Board  of  Directors  and the  Plan.  The Vice  President  and
          Treasurer  and the Vice  President  - General  Counsel  shall  each be
          authorized on behalf of the Company (a) to give directions to Trustees
          and investment  advisors required or permitted under Trust Agreements,
          investment advisor agreements,  and agreements  ancillary thereto, and
          (b) to  designate  in writing  persons to act on behalf of the Company
          under and in connection with the Trust Agreements,  investment advisor
          agreements,  and agreements  ancillary thereto,  and to certify to the
          Trustees and investment advisors that such persons,  which may include

<PAGE>

          the Vice  President  and  Treasurer  and the Vice  President - General
          Counsel,  are  authorized  to act on behalf of the Company under or in
          connection with the Trust Agreements,  investment advisor  agreements,
          and agreements  ancillary thereto. The instrument pursuant to which an
          individual  is certified or authorized to act on behalf of the Company
          shall constitute a written designation for purposes of the immediately
          preceding sentence.

     (c)  Appointment  of  Administration  Committee,  Determinations  of  Prior
          Service in Connection with Certain Corporate Transactions, and Certain
          Allocations of  Responsibility.  Except as otherwise  provided in this
          Article XI or elsewhere in the Plan, the Vice President - Human

                                             XI-1
          Resources and the Vice President and Treasurer are designated to carry
          out  the  Company's   responsibilities   with  respect  to  the  Plan,
          including,  without limitation,  appointment and removal of members of
          the  Administration  Committee and  determination of prior service for
          eligibility  purposes  under the Plan in the event of acquisition by a
          Participating Employer or Affiliated Employer (by purchase, merger, or
          otherwise)  of  all  or  part  of  the  assets  of  another   business
          organization  and in the event of the  employment  by a  Participating
          Employer  or  Affiliated  Employer of all or a  substantial  number of
          individuals  employed in the  operations  of an employer that is not a
          Participating  Employer or  Affiliated  Employer;  provided  that such
          prior service may also be provided for in instruments  created by duly
          authorized  officers or agents of the Company in  connection  with the
          transactions   whereby  assets  are  acquired  or  individuals  become
          employees of a Participating Employer or Affiliated Employer. The Vice
          President - Human  Resources and the Vice  President and Treasurer may
          allocate  responsibilities  between themselves and may designate other
          persons  to carry  out  specific  responsibilities  on  behalf  of the
          Company.

     (d)  Company Action and Title Capacities.  Any Company director, officer or
          employee who shall have been expressly designated pursuant to the Plan
          to carry  out  specific  Company  responsibilities  shall be acting on
          behalf of the  Company.  Any person or group of  persons  may serve in
          more than one capacity  with respect to the Plan and may employ one or
          more persons to render advice with regard to any responsibilities such
          person has under the Plan.

     11.3 Administration Committee.

     (a)  Appointment of Administration Committee. The Company, by action of its
          Vice President - Human Resources and its Vice President and Treasurer,
          shall  create a  Savings  and  Stock  Investment  Plan  Administration
          Committee consisting of at least three members. The Company shall from
          time to time designate the members of the Administration Committee and
          an alternate  for each of such  members,  who shall have full power to
          act

<PAGE>

          in the absence or inability to act of such member.  The Administration
          Committee shall appoint its own Chairman and Secretary,  and shall act
          by a  majority  of its  members,  with or  without a  meeting.  At the
          Trustee's  request,  the  Secretary or an  Assistant  Secretary of the
          Company shall from time to time notify the Trustee of the  appointment
          of members of the  Administration  Committee and alternates and of the
          appointment  of the  Chairman  and  Secretary  of  the  Administration
          Committee, upon which notices the Trustee shall be entitled to rely.

     (b)  Powers of Administration Committee. The Administration Committee shall
          have full power and  authority to administer  the Plan,  interpret its
          provisions,  and make  factual  determinations  concerning  claims for
          benefits and other matters relating to the administration of the Plan.
          Any  interpretation  of the provisions of the Plan or findings of fact
          by the  Administration  Committee shall be final and  conclusive,  and
          shall  bind  and  may be  relied  upon  by the  several  Participating
          Companies,  each of their employees,  the Trustee and all Participants
          and  other  parties  in  interest.  In  addition,  the  Administration
          Committee  shall have the full power and authority to supply rules for
          matters not
                                            XI-2
          covered by the Plan and to supply  missing  terms,  provided  that all
          such actions shall be in writing and shall be consistent with existing
          Plan provisions.

     11.4  Investment  Process  Committee.  The  Company,  by action of the Vice
President  -  Treasurer,  the  Vice  President  Human  Resources,  and the  Vice
President - General Counsel shall create an Investment  Process  Committee.  The
Investment  Process Committee shall recommend  investment  process guidelines to
the Vice Presidents for their approval. Such guidelines shall include:

     (a)  the types of investment options to be offered under the Plan, with due
          regard to the risk and return  characteristics of such options and the
          need to offer a reasonable array of such risk and return alternatives;
     (b)  the number of investment  options of each type to be offered under the
          Plan,  consistent  with the range of risk and  return  characteristics
          deemed appropriate;
     (c)  criteria  for the  selection  of  individual  investment  options  for
          inclusion in the Plan;
     (d)  procedures for reviewing the performance of investment options offered
          under the Plan; and
     (e)  criteria mandating the removal of investment options from availability
          under the Plan.

After such guidelines have been approved by the Vice Presidents,  the Investment
Process Committee shall meet at least semiannually to (1)  review the guidelines
for  continuing  propriety,  (2)  review  the  performance of investment options
pursuant  to  the  criteria  regarding  the  removal  of investment options from
availability  under the Plan,  and (3) recommend  changes  to the guidelines for
approval by the Vice Presidents. The Investment Process Committee shall

<PAGE>

recommend  to  the  Vice Presidents,  for  their approval,  any changes  to  the
investment process  guidelines that the Committee deems appropriate.  If changes
to  the investment options are required,  the Investment Process Committee shall
recommend additional options,  the deletion of options, and, if appropriate, the
replacement of options to the Vice Presidents for their approval.

     11.5  Indemnification.   No  member  of  the  Administration  Committee  or
alternate  for a member or  member  of the  Investment  Committee  or  director,
officer or employee of any Participating Employer shall be liable for any action
or failure to act under or in  connection  with the Plan,  except for his or her
own lack of good faith;  provided,  however, that nothing herein shall be deemed
to relieve any such person from  responsibility  or liability for any obligation
or duty under ERISA. Each director,  officer,  or employee of the Company who is
or shall have been  designated  to act on behalf of the  Company and each person
who is or  shall  have  been a  member  of the  Administration  Committee  or an
alternate for a member or a member of the Investment  Committee,  or a director,
officer or employee of any Participating Employer, as such, shall be indemnified
and held  harmless  by the  Company  against  and from any and all  loss,  cost,
liability or expense that may be imposed upon or  reasonably  incurred by him or
her in connection with or resulting from any claim,  action,  suit or proceeding
to  which he or she may be a party  or in  which  he or she may be  involved  by
reason of any action taken or failure to act under the Plan and against and from
any and all amounts paid by him or her in settlement thereof (with the Company's
written  approval)  or paid by him or her in  satisfaction  of a judgment in any
such action, suit or proceeding, except a judgment in favor of the Company based
upon a

                                     XI-3

finding  of  his  or  her lack of good faith; subject, however, to the condition
that,  upon  the  assertion  or  institution of any such claim, action,  suit or
proceeding against him or her,  he  or  she shall in writing give the Company an
opportunity,  at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing right
of  indemnification  shall  not  be  exclusive  of any other right to which such
person may be entitled  as  a  matter of  law  or otherwise, or any power that a
Participating  Employer  may  have to  indemnify  him  or her or hold him or her
harmless.

     11.6 Payment of Expenses.  Brokerage  commissions and transfer taxes on the
purchase  and sale of Common  Stock Fund  securities  shall be paid from  Common
Stock Fund assets by the Trustee.  The expenses of any  collective,  common,  or
commingled  fund in which Common  Stock Fund assets may be invested  pursuant to
Section 8.4 hereof shall be paid from the assets in such  collective,  common or
commingled  fund.  Brokerage  commissions and transfer taxes on the purchase and
sale of  Bond  Fund  securities  and (to the  extent  not  paid by the  Company)
investment  management  fees shall be paid from Bond Fund assets by the Trustee.
Earnings  credited  to the account of the Trustee  under any  Accumulation  Fund
contract may be net of such charges by the  Accumulation  Fund Manager as may be
provided in such  contract.  Brokerage  commissions  and  transfer  taxes on the
purchase and sale of Interest Income Fund securities shall be paid from Interest

<PAGE>

Income Fund assets by the Trustee and the expenses of any collective, common, or
commingled fund in which Interest Income Fund assets may be invested pursuant to
Section 8.6 hereof shall be paid from the assets in such  collective,  common or
commingled fund. All management fees,  redemption fees and all other expenses of
any mutual funds offered as an investment  election under the Plan shall be paid
from assets in such mutual funds or charged to the Accounts of Participants  who
elect to invest in such  mutual  funds.  Earnings  credited  to the  Accounts of
Participants  who shall  have  elected  to invest in the Bond Fund may be net of
such charges by the Bond Fund Advisor as shall be provided in the contract  with
the Bond  Fund  advisor.  All  other  expenses  of  administration  of the Plan,
including brokerage commissions,  fees and transfer taxes incurred in connection
with the  purchase  or sale of  Company  Stock  and  Associates  Stock,  fees of
Investment  Advisors and other expenses charged or incurred by the Trustee shall
be borne by the Company and,  upon request from time to time,  the Company shall
reimburse the Trustee for expenses incurred by it; provided,  however, that with
respect to any of such other expenses of administration of the Plan, the Trustee
first shall apply to the payment of expenses the value of any of the assets that
shall have been  forfeited  at any time in  accordance  with the  provisions  of
Article X hereof. Taxes, if any, on any Ford Stock Fund Units,  Associates Stock
Fund  Units,  Common  Stock Fund Units or Bond Fund Units held by the Trustee or
income  therefrom  which are payable by the Trustee shall be charged against the
Participants'  Accounts as the Trustee and the  Administration  Committee  shall
determine. When Company Stock is applied to the payment of expenses of the Plan,
the Trustee shall use for the payment of such expenses,  from the  contributions
made to the Plan  during the month  during  which such  contributions  are being
paid, an amount equal to the value of such stock as  determined  pursuant to the
provisions of this Section 11.5.

     11.7  Records.  The records of the Trustee,  the  Committee and the several
Participating  Companies shall be conclusive in respect of all matters  involved
in the administration of the Plan.

                                       XI-4

     11.8 Participants' Statements, Notices, Etc.

     (a)  Participants'  Quarterly Statements.  As soon as practicable after the
          end of each calendar quarter of each year, there shall be furnished to
          each  Participant  a statement  as of the end of each such  quarter of
          such year of the cash value of the  investments  in his or her Account
          or  Accounts,   the  contributions  made  by  or  on  behalf  of  such
          Participant  during the preceding  calendar  quarter,  the  investment
          elections  with  respect to such  contributions,  and such  additional
          information as the  Administration  Committee  shall  determine.  Such
          statements  shall be deemed to have been  accepted by the  Participant
          and his or her  beneficiaries  designated  hereunder as correct unless
          written  notice to the contrary shall be received as the Company shall
          specify on such

<PAGE>

          statement  within 30 days after the mailing of such  statement  to the
          Participant.

     (b)  Notices,  Etc. All notices,  statements and other  communications from
          the Trustee or a Participating Employer to an Employee, Participant or
          designated beneficiary required or permitted hereunder shall be deemed
          to have been duly given, furnished,  delivered or transmitted,  as the
          case may be, when  delivered to, or when mailed by  first-class  mail,
          postage  prepaid  and  addressed  to  the  Employee,   Participant  or
          beneficiary  at his or her address last appearing on the books of such
          Participating Employer.

          All notices, instructions and other communications from an Employee or
          Participant to the Company or Trustee required or permitted  hereunder
          (including without limitation payroll deduction authorizations, Salary
          Reduction Agreements and changes and terminations thereof,  investment
          and other elections, requests for withdrawal or loans and designations
          of beneficiaries  and revocation and changes thereof) shall be made in
          such form and in such manner from time to time prescribed  therefor by
          the Administration Committee.

          From time to time as necessary to facilitate the administration of the
          Plan and the trust created  thereunder,  the Company,  the Trustee and
          the  Administration  Committee  shall  deliver to each other copies or
          consolidations of such notices,  instructions or other  communications
          in respect of the Plan or such trust as it may receive from Employees,
          Participants or beneficiaries.

     11.9  Governing  Law.  The  Plan  shall be  governed  by and  construed  in
accordance  with the laws of the State of Michigan except to the extent such law
is preempted by ERISA.

                                     XI-5

<PAGE>

                                   ARTICLE XII
                                   -----------

                    Termination, Suspension and Modification
                    ----------------------------------------

     12.1  General.  The  Company,  by  action of its  Board of  Directors,  may
terminate or modify the Plan or suspend the  operation  of any  provision of the
Plan,  and the  Company,  as provided  in Section  11.2(a) by action of the Vice
President - Human  Resources,  the Vice  President and  Treasurer,  and the Vice
President - General Counsel, may modify the Plan or suspend the operation of any
provision  of the Plan other than  provisions  relating to the extent of Company
Matching  Contributions  and the  offering  of  Company  Stock as an  investment
election, as provided below in this Article XII.

     12.2 Scope of Action. The Company may terminate the Plan at any time or may
at any time or from time to time modify the Plan,  in its entirety or in respect
of the Employees of one or more of the Participating  Companies. The Company may
at any time or from time to time terminate or modify the Plan or suspend for any
period the  operation  of any  provision  thereof,  in respect of any  Employees
located  in  one  or  more  States  or  countries,  if in  the  judgment  of the
Administration Committee compliance with the laws of such State or country would
involve  disproportionate expense and inconvenience to a Participating Employer.
Any such  modification  that  affects the rights or duties of the Trustee may be
made only with the consent of the Trustee. Any such termination, modification or
suspension of the Plan may affect  Participants in the Plan at the time thereof,
as well as future  Participants,  but may not affect the rights of a Participant
as to (a) the continuance of investment,  distribution or withdrawal of the cash
value  of  assets  in the  Account  or  Accounts  of the  Participant  as of the
effective  date of  such  termination,  modification  or  suspension  or (b) the
continuance  of  vesting  of  such  assets   attributable  to  Company  Matching
Contributions or Earnings  thereon.  Any termination or modification of the Plan
or suspension of any provision thereof shall be effective as of such date as the
Company may determine,  but not earlier than the date on which the Company shall
give notice of such  termination,  modification or suspension to the Trustee and
to the  Participating  Companies  any of the  Employees  of which  are  affected
thereby.

     12.3 Effect of Termination.  Upon any termination or partial termination of
the Plan or the complete discontinuance of contributions thereunder,  within the
meaning of Section 411(d)(3)(A) and (B) of the Code, the cash value of assets in
the Account of any affected  Employee within the meaning of Section 411(d)(3) of
the Code shall be deemed to have  vested and shall be  nonforfeitable  as of the
date of such  termination,  partial  termination or complete  discontinuance  of
contributions.

     For purposes of this paragraph,  the determination as to whether there is a
termination or partial  termination of the Plan or a complete  discontinuance of
contributions  thereunder and the date thereof and as to the Employees  affected
thereby shall be made by the Company provided,  however, that such determination
shall  be  in  accordance  with  the  applicable  provisions  of  the  Code.  In

<PAGE>

determining the applicability of such Code provisions, the Company may rely upon
an opinion of counsel.

                                         XII-1

     12.4 Retroactive Amendment. The provisions of Section 12.2 notwithstanding,
the  Company,  by  action  of its  Board of  Directors  or by action of the Vice
President - Human  Resources,  the Vice  President  and  Treasurer  and the Vice
President - General Counsel,  at any time or from time to time may modify any of
the  provisions of the Plan in any respect  retroactively,  if and to the extent
necessary  or  appropriate  in the  judgment  of the Board of  Directors  of the
Company  or the  Vice  President  - Human  Resources,  the  Vice  President  and
Treasurer and the Vice President - General  Counsel,  to qualify or maintain the
Plan and the Trust Fund established as a plan and trust meeting the requirements
of  Sections  401(a)  and  501(a)  of the Code,  as now in  effect or  hereafter
amended,  or any  other  applicable  provisions  of  Federal  tax  laws or other
legislation,  as  now in  effect  or  hereafter  amended  or  adopted,  and  the
regulations thereunder at the time in effect.

     12.5  Limitations  of Effects of Actions.  Anything  herein to the contrary
notwithstanding,  no such  termination or modification of the Plan or suspension
of any provision thereof may diminish the cash value of assets in the Account or
Accounts  of a  Participant  as of  the  effective  date  of  such  termination,
modification or suspension.

     12.6 Special Rules for Mergers,  Consolidations and Asset Transfers. In the
event  of (a) the  acquisition  by a  Participating  Employer  or an  Affiliated
Employer  (by  purchase,  merger or  otherwise)  of all or part of the assets of
another business organization or (b) the employment by a Participating  Employer
or Affiliated Employer of all or a substantial number of individuals employed in
the operations of an employer that is not a Participating Employer or Affiliated
Employer,  the Plan may accept a transfer of assets from the plan  maintained by
the employer from whom such assets are acquired or by whom such individuals were
employed;  provided such plan is a plan  qualified  under Section  401(a) of the
Code (and Section 401(k) of the Code, if applicable) and all assets  transferred
are allocable to individuals who become employees of a Participating Employer or
Affiliated  Employer.  In the event of (a) the  divestiture  by a  Participating
Employer or Affiliated Employer (by sale, merger or otherwise) of all or part of
the assets (including interests in business  organizations) of such organization
or (b) the  transfer  to an  employer  that is not a  Participating  Employer or
Affiliated Employer of the employment of individuals employed by a Participating
Employer or Affiliated  Employer,  the Plan may transfer assets on the following
conditions.  The assets must be transferred to a plan  maintained by a successor
employer  of  individuals  who  are  employed  by  such  successor  employer  in
connection with a transaction  described in the immediately  preceding sentence;
the assets  transferred  must  consist  of assets  attributable  to the  Account
balances under the Plan of such  individuals;  the amount of assets  transferred
may not be less than

<PAGE>

the amount required to comply with Section 414(l) of the Code; and such transfer
shall  be to a plan  that is a plan  qualified  under Section 401(a) of the Code
(and Section 401(k) of the Code,  if applicable).  The Company may authorize and
evidence the authorization of any transfers  described above in  this section in
any instrument  executed by duly authorized officers or agents  of  the Company,
including  instruments  evidencing  the  transactions described  and instruments
executed by the officers authorized under Section 11.2 to amend the Plan. In the
event of any merger or consolidation with, or transfer of assets or liabilities
to,  any  other  plan,  each  Employee,  Participant, former  Employee,  former
Participant,  beneficiary  or estate  eligible under the Plan shall, if the Plan
is  then  terminated,  receive  a  benefit  immediately  after  the  merger,
consolidation  or  transfer,  which is equal to the benefit he or she would have
been  entitled  to  receive  immediately  before  the  merger,  consolidation or
transfer if the Plan had then terminated.
                                        XII-2

<PAGE>

                                  ARTICLE XIII
                                  ------------

                                 Top-Heavy Rules
                                 ---------------

     If the Plan is or becomes  top-heavy in any Plan Year,  the  provisions  of
this paragraph shall  supersede for such Plan Year any conflicting  provision of
the Plan.  This Plan is top-heavy in any Plan Year if the top-heavy ratio on the
determination  date for such year for the  required  aggregation  group of plans
exceeds 60 percent.

     13.1 Definitions.

          (a)  Top-heavy ratio:

               (i)  The top-heavy ratio is a fraction, the numerator of which is
                    the sum of account  balances for all key employees under the
                    defined contribution plans of the Company and affiliates and
                    the present value of accrued  benefits for all key employees
                    under  the  defined   benefit   plans  of  the  Company  and
                    affiliates,  and the  denominator of which is the sum of the
                    account  balances  for all  participants  under the  defined
                    contribution  plans of the  Company and  affiliates  and the
                    present value of accrued benefits for all participants under
                    defined  benefit plans of the Company and  affiliates.  Both
                    the numerator  and  denominator  of the top-heavy  ratio are
                    adjusted for any  distribution  of an account  balance or an
                    accrued  benefit made in the five-year  period ending on the
                    determination date and any contribution due but unpaid as of
                    the determination date.

               (ii) For purposes of (i) above, the value of account balances and
                    the present value of accrued  benefits will be determined as
                    of the most recent  determination date. The account balances
                    and accrued  benefits of a participant  (1) who is not a key
                    employee  but who was a key  employee in a prior year or (2)
                    who has not been  credited with at least one hour of service
                    at any time  during  the  five-  year  period  ending on the
                    determination  date will be disregarded.  The calculation of
                    the top-heavy  ratio and the extent to which  distributions,
                    rollovers, and transfers are taken into account will be made
                    in  accordance   with  Section  416  of  the  Code  and  the
                    regulations thereunder.

               (iii)Solely for the purpose of  determining  if the Plan,  or any
                    other plan included in a required aggregation group of which
                    this Plan is a part,  is  top-heavy  (within  the meaning of
                    Section  416(g)  of the  Code)  the  accrued  benefit  of an
                    Employee  other than a key  employee  (within the meaning of
                    Section  416(i)(1)  of  the  Code) shall be determined under

<PAGE>

                    (a) the method, if any, that uniformly applies for

                                     XIII-1

                    accrual  purposes under all plans  maintained by the Company
                    and  affiliates,  or (b) if there is no such  method,  as if
                    such  benefit  accrued  not more  rapidly  than the  slowest
                    accrual rate permitted under the fractional  accrual rate of
                    Section 411(b)(1)(C) of the Code.

               (b)  Required aggregation group of plans: (i) each qualified plan
                    of the  Company  or an  affiliate  in which at least one key
                    employee participates,  (ii) any other qualified plan of the
                    Company or an affiliate  which  enables a plan  described in
                    (i) to meet the requirements of Sections 401(a)(4) or 410 of
                    the Code,  and (iii) any qualified  plan which may have been
                    terminated in the past 5 years.

               (c)  Key   employee:   A  key  employee  as  defined  in  Section
                    416(i)(1)of  the Code is any Employee or former Employee who
                    at  any  time   during   the  Plan   Year   containing   the
                    determination  date or the four  preceding  Plan Years is or
                    was:

                    (1)  an officer of the Company  having  annual  compensation
                         for such Plan Year in excess of 50% of the dollar limit
                         in effect under  Section  415(b)(1)(A)  of the Code for
                         the calendar year in which such Plan Year ends;

                    (2)  an  owner  for (or  considered  as  owning  within  the
                         meaning  of  Section  318 of the Code) both more than a
                         1/2 percent  interest as well as one of the ten largest
                         interests   in   the   employer   and   having   annual
                         compensation  greater  than the dollar  limit in effect
                         under Section 415(c)(1)(A) of the Code for the year;

                    (3)  a five percent owner of the Company; or

                    (4)  a one  percent  owner  of the  Company  who has  annual
                         compensation of more than $150,000.

                    For purposes of  determining  five-percent  and  one-percent
                    owners,  neither  the  aggregation  rules  nor the  rules of
                    Subsections  (b),  (c) and (m) of  Section  414 of the  Code
                    apply. Beneficiaries of an Employee acquire the character of
                    the Employee and inherited  benefits retain the character of
                    the benefits of the Employee.

<PAGE>

               (d)  Present value:  Present value shall be based on the interest
                    and  mortality rates used to determine actuarial equivalence
                    under the defined benefit plans.

               (e)  Determination date:  The  determination date is the last day
                    of the preceding Plan Year.

               (f)  Valuation  Date:  The valuation  date is the last day of the
                    preceding Plan Year.

                                     XIII-2

     13.2      Minimum Allocation.

               (a)  Except  as  otherwise  provided  in (c) and (d)  below,  the
                    employer  contributions and forfeitures  allocated on behalf
                    of any  Participant  who is not a key employee  shall not be
                    less than three percent of such Participant's  compensation,
                    or if less  than  three  percent,  the  percentage  at which
                    contributions  are made  under the Plan for the year for the
                    key employee for whom such percentage is the highest for the
                    year. The percentage at which  contributions  are made for a
                    key   employee   shall  be   determined   by  dividing   the
                    contributions for and forfeitures allocated on behalf of any
                    such  employee  by so much of his or her total  compensation
                    for the  year as  does  not  exceed  $150,000.  The  minimum
                    allocation  is  determined  without  regard  to  any  Social
                    Security contribution. This minimum allocation shall be made
                    even though,  under other Plan  provisions,  the participant
                    would not otherwise be entitled to receive an allocation, or
                    would have received a lesser allocation for the year because
                    of (i) the Participant's  failure to complete 1,000 hours of
                    service (or any  equivalent  provided in the Plan),  or (ii)
                    the  Participant's   failure  to  make  mandatory   employee
                    contributions to the Plan, or (iii) compensation less than a
                    stated amount.

               (b)  For   purposes  of   computing   the   minimum   allocation,
                    compensation will equal the wages reported on the employee's
                    Form W-2 from the Company for the year.

               (c)  The   provision   in  (a)  above  shall  not  apply  to  any
                    participant  who  was  not  employed  by the  Company  or an
                    affiliate on the last day of the Plan Year.

               (d)  The   provision   in  (a)  above  shall  not  apply  to  any
                    Participant  to the extent the  Participant is covered under
                    any other plan or plans of the Company or an  affiliate  and
                    the  Company or  affiliate  has  provided  that the  minimum
                    benefit requirement

<PAGE>

               applicable  to  top-heavy  plans will be met in the other plan or
               plans.

     13.3      Nonforfeitability. The minimum allocation required (to the extent
               required to be  nonforfeitable  under Section 416(b) of the Code)
               may not be forfeited  under  Section 411(a)(3)(B) or 411(a)(3)(D)
               of the Code.

     13.4      Compensation Limitation.  For  any Plan Year in which the Plan is
               top-heavy, only the first $150,000  (or such larger amount as may
               be  prescribed  by  the  Secretary  or  his or her delegate) of a
               Participant's annual compensation shall be taken into account for
               purposes of  determining  employer  contributions under the Plan.

     13.5      Vesting.  For  any  Plan Year in which this Plan is top-heavy, an
               employee  who  has completed at least three years of service with
               the  Company  or  a  subsidiary  or  affiliate  will  have  a
               nonforfeitable  right  to  100%  of  his  or  her account balance
               attributable to Company

                                           XIII-3

               contributions.  This  minimum  vesting  schedule  applies  to all
               benefits  within the  meaning of  Section  411(a)(7)  of the Code
               except those  attributable to employee  contributions,  including
               benefits  accrued before the effective date of Section 416 of the
               Code and  benefits  accrued  before  the Plan  became  top-heavy.
               Further,  no reduction in vested  benefits may occur in the event
               the  Plan's  status  as  top-heavy  changes  for any  Plan  Year.
               However, this subparagraph does not apply to the account balances
               of any  employee  who does not have an hour of service  after the
               Plan has initially become  top-heavy and such employee's  account
               balance  attributable to employer  contributions  and forfeitures
               will be determined without regard to this subparagraph.

     13.6      Combined Limitation.  For  any  Plan  Year  in which this plan is
               top-heavy,  the  limitation  in Section 3.4(e)(7) hereof shall be
               computed by  substituting  the  number  1.0  for  the number 1.25
               wherever the latter numberappears in that section.

<PAGE>

                                     XIII-4

                                   ARTICLE XIV
                                   -----------

                          Designation of Beneficiaries
                          ----------------------------

     14.1 General.  The provisions of this Article XIV apply to any  Participant
who has an Account by reason of his or her employment  with an entity that is or
was a  Participating  Employer  or by reason of a Qualified  Domestic  Relations
Order (within the meaning of Section 414(p)of the Code) and not to an individual
who may claim to be a  Participant  by reason of being a  beneficiary  of such a
Participant.  Except as is provided in Section 14.2 hereof,  a  Participant  may
file in such  manner  and in such  form and at such  time as the  Administration
Committee shall specify a written  designation of a beneficiary or beneficiaries
(subject to such imitations as to the classes and numbers of  beneficiaries  and
contingent  beneficiaries as the Administration  Committee from time to time may
prescribe)  to receive  the cash value of assets in the  Account or  Accounts of
such  Participant in the Plan.  Except as is provided in Section 14.2

<PAGE>

hereof,  a  Participant  may  from  time  to  time  revoke  or  change  any such
designation of beneficiary.  Any designation of beneficiary under the Plan shall
be controlling over any testamentary or other  disposition.   Except as provided
in Section  14.2 hereof,  a Participant who  has not designated a beneficiary or
whose designated beneficiary has predeceased the Participant  shall be deemed to
have designated as  beneficiary  or  beneficiaries  under the Plan the person or
persons who are entitled in the event of the Participant's  death to receive the
proceeds  unde  the  Company's  Group  Life Insurance Plan if the Participant is
covered under such Plan at the date of his or her death.

     14.2 Married  Participants.  A married  Participant shall be deemed to have
designated his or her surviving  spouse as beneficiary to receive the cash value
of assets in such  Participant's  Account or Accounts under the Plan unless such
Participant  shall  have  filed  with the  Company  a written  designation  of a
different  beneficiary pursuant to Section 14.1 hereof together with the written
consent of the spouse to such designation, witnessed by a Plan representative or
a notary public.

                                    XIV-1

<PAGE>

                                   ARTICLE XV
                                   ----------

                          Employee Stock Ownership Plan
                          -----------------------------

     15.1  Description  of ESOP.  The Employee  Stock  Ownership  Plan  ("ESOP")
established  in the Plan  effective  January  1, 1989  shall  consist of all the
shares of Company Stock in the Plan at any time and from time to time  including
all the shares allocated to Participants' Accounts,  forfeited shares and shares
held  in  the  suspense   account  as  hereinafter   described  and  all  assets
attributable to contributions made after December 31, 1988.

     15.2 ESOP Trustee. The trustee of the ESOP shall be the Trustee of the Plan
or such other  qualified  organization as the Company shall select (the "Trustee
of the ESOP").  The Trustee of the of the Plan and the Trustee of the ESOP shall
hold, invest,  transfer and distribute the shares of Company Stock and all other
assets in the ESOP in accordance  with the provisions of this Article XV and the
Plan. In the event the Company selects an organization other than the Trustee of
the Plan to be  Trustee  of the  ESOP,  their  duties  under  the ESOP  shall be
allocated  between  them as  hereinafter  provided  or in  accordance  with  the
provisions  of the trust  agreements  appointing  such  Trustee  of the Plan and
Trustee of the ESOP.

     15.3  Borrowing on Behalf of ESOP.

          (i)  The  Trustee of  the  ESOP shall  borrow on behalf of the ESOP an
amount not exceeding the amount of dividends estimated by  the  Trustee  of  the
ESOP,  after consultation  with the Trustee of the Plan and the Treasurer of the
Company,  to be paid on Company Stock held continuously since January 1, 1989 in
the ESOP in such period succeeding  such borrowing by the Trustee as the Trustee
shall select, subject to a guarantee by the Company of payment of any such loan.
The  loan  shall  provide  for  a  reasonable  rate  of interest, shall be for a
definite period of time, and shall be without recourse against the Plan.

          (ii)  The  Trustee  of  the ESOP shall borrow on behalf of the ESOP an
amount to be used to acquire Company Stock  in  connection  with  the  Company's
obligation to make Pre-Tax Contributions or Company Matching  Contributions,  as
directed  by  the Company,  subject to a  guarantee by the Company of payment of
any  such loan. The loan shall provide for a reasonable rate of interest,  shall
be  for  a  definite  period of time,  and shall be without recourse against the
Plan.

          (iii) The  Trustee  of  the ESOP is authorized to borrow such amounts
from such persons,  including the Company, as  the  Trustee  of  the ESOP  shall
determine. The loan shall provide for repayment within  such  period  succeeding
such  loan as  the Trustee of the ESOP shall have selected, and shall be payable
on such other terms as the Trustee of the  ESOP  in  its  sole discretion  shall
determine.

<PAGE>

          (iv) The proceeds of any such loan shall be used by the Trustee of the
ESOP to purchase within a  reasonable  period of time shares of Company Stock in
accordance  with  the  provisions  of Section  9.2 hereof and as directed by the
Company.  The Trustee of the ESOP is authorized to pledge such Stock as security
for the payment of such loan.

                                      XV-1
     15.4 Suspense Account. The Trustee of the ESOP shall hold loan proceeds and
shares of Company Stock so purchased in the Plan in a suspense  account for each
loan unallocated until such time as all or part of the related loan and interest
thereon  is paid as  hereinafter  provided.  The  Trustee of the ESOP shall vote
shares  of  Company   Stock  in  the   suspense   account  in  its   discretion,
notwithstanding the provisions of Section 9.3.

     15.5  Application of Dividends.  The Trustee of the Plan and the Trustee of
the ESOP  shall  apply  dividends  paid on  Company  Stock held in the ESOP with
respect to which a loan was taken, including shares held in the Ford Stock Fund,
to payment of such loan made in accordance with Section 15.3 hereof and interest
thereon.

     In the event that such  dividends  paid on Company Stock are not sufficient
to enable the Trustee of the ESOP to make any payment on such loan , the Trustee
of the ESOP shall sell shares of Company  Stock held in the suspense  account in
an amount necessary to permit such payment provided,  however,  that the Company
may elect to make an additional contribution to the Plan in an amount sufficient
to enable the  Trustee of the ESOP to make all or part of such  payment  without
selling shares of Company Stock held in the suspense account.

     In the event  that such  dividends  paid on  Company  Stock and the  amount
realized  from the sale of Company  Stock held in the  suspense  account are not
sufficient  to enable the  Trustee of the ESOP to make any payment on such loan,
the Company shall make an additional  contribution to the Plan by making payment
to the Trustee of the ESOP in an amount  sufficient to enable the Trustee of the
ESOP to make such payment or shall pay such amount to the lender.

     15.6  Release of Shares  from  Suspense  Account.  The  shares  held in the
suspense  account shall be released from the suspense  account to the Trustee of
the Plan in an amount that bears the same ratio to the total number of shares in
the suspense  account as the amount of principal  and interest  paid on the loan
bears to the total amount of principal and interest outstanding.  The Trustee of
the Plan shall  allocate  such shares so released to the Ford Stock Fund and the
Accounts of  Participants as if the dividends paid on Company Stock with respect
to shares held in the Ford Stock Fund had been used to acquire shares of Company
Stock in the open  market on the last day of the month  preceding  the date such
shares are released from the suspense account.

     To the extent that the number of shares released from the suspense  account
at any time is less than the number that would be required for allocation to the
Ford Stock Fund if the dividends  paid on Company Stock had been used to acquire
shares of Company  Stock in the open market at the closing price on the New York

<PAGE>

Stock  Exchange  on the  dividend  payment  date,  the  Company  shall  make  an
additional  contribution  to the Plan in an  amount  sufficient  to  permit  the
Trustee  of the ESOP to  acquire  additional  shares  so that  the  value at the
closing price on the dividend payment date of the shares released to the Trustee
of the Plan plus cash, if any,  shall equal the dividends paid by the Trustee of
the Plan with respect to Company Stock to the Trustee of the ESOP.

     To the extent that the number of shares released from the suspense  account
at any time is greater  than the number that would be required if the  dividends
paid on Company  Stock had been used to acquire  shares of Company  Stock in the
open market , the excess  shall be held by the Trustee of the ESOP and  released
at

                                      XV-2
the  end of the calendar year to the Trustee  of the Plan for an addition to the
Ford Stock Fund and allocation of additional units in the Ford Stock Fund to the
Accounts of Participants in an amount proportional to the number of  Ford  Stock
Fund units in their Accounts.

     15.7   Application   of   Pre-Tax   Contributions   or   Company   Matching
Contributions.  The  Trustee of the Plan and the Trustee of the ESOP shall apply
Pre-Tax Contributions or Company Matching  Contributions to the repayment of any
loan  described in Section  15.3(ii)  and release from the suspense  account for
allocation,  in accordance with Section 3.6, a number of shares of Company Stock
equal in value as of the time of release to the Pre-Tax Contributions or Company
Matching  Contributions  delivered to the Trustee of the ESOP. In the event that
contributions  for loans described in 15.3(ii) above are insufficient to pay any
outstanding loan balance,  the Company shall make an additional  contribution to
pay such insufficient amount. In the event that after the loan is repaid in full
there are shares of Company  Stock  remaining  in the  suspense  account,  those
shares  shall  be  allocated  in  accordance  with  the  provisions  of the last
paragraph of Section 15.6.

     15.8  Limitation  on  Contributions  for  Highly   Compensated   Employees.
Contributions to the ESOP for any Eligible Employee who is a highly  compensated
employee shall be limited to the extent required under the principles  described
in Section  3.4 hereof  with  respect to  After-Tax  Contributions  and  Pre-Tax
Contributions.

     15.9 Administration  Committee Authority.  The Administration  Committee is
authorized to make such  adjustments in the  administration  of the Plan and the
ESOP as it deems  necessary,  appropriate or desirable to carry out the purposes
and intents of this Article XV.

     15.10 Sale of Company Stock in Suspense  Account.  In the event that any or
all of the tax  benefits  available  under  the tax laws on the  effective  date
hereof are restricted or eliminated,  as determined by the Company,  the Trustee
of the ESOP is authorized upon direction by the Company to sell upon such terms,
at such  times  and to such  persons,  as the  Trustee  of the  ESOP in its sole
discretion  shall  determine,  any or all of the shares of Company  Stock in the
suspense

<PAGE>

account and to use the proceeds of such sale to pay all or part of the
loan balance  outstanding,  together with interest thereon. Any excess shares in
the suspense account at such time shall be allocated as provided in subparagraph
7 hereof.

                                      XV-3

<PAGE>

                                   ARTICLE XVI
                                   -----------

           Conditions on Participation of Subsidiaries of the Company
           ----------------------------------------------------------

     The  consent  of the  Company  to the  participation  in  the  Plan  of any
Subsidiary of the Company may be conditioned upon such provisions as the Company
may  prescribe  including,   without  limitation,   conditions  as  to  (a)  the
instruments to be executed and delivered by such  Participating  Employer to the
Trustee, (b) the extent to which the Company shall act as representative of such
Participating  Employer  under the Plan,  (c) the  rights of such  Participating
Employer  to  withdraw  from  participation  in the Plan and the  effect of such
withdrawal upon the  participation and Accounts in the Plan of employees of such
Participating  Employer,  and (d)  reimbursement  of the  Company  on account of
Company  Matching  Contributions.  A Defined  Contribution  Plan maintained by a
subsidiary  that is treated as a single  employer  with the Company  pursuant to
Subsections  414(b), (c) and (m) of the Code may be merged with the Plan and the
assets of any plan maintained by such a Subsidiary may be transferred to a Trust
under this Plan in accordance with the provisions of any acquisition,  merger or
similar instrument executed by duly authorized officers or agents of the Company
or pursuant to any other duly authorized Corporate instrument.

<PAGE>

                                      XVI-1
<TABLE>
<CAPTION>

              FORD MOTOR COMPANY SAVINGS AND STOCK INVESTMENT PLAN
                                       FOR
                               SALARIED EMPLOYEES

                                   Appendix A
                             Additional Mutual Funds

<S>                                               <C>
   Income Funds:                                  International Funds:
   Fidelity International Bond Fund               Fidelity Canada Fund
   Fidelity Government Securities Fund            Fidelity Europe Fund
   Fidelity Investment Grade Bond Fund            Fidelity International Growth and
   Fidelity New Markets Income Fund                  Income Fund
   Scudder Income Fund                            Fidelity Pacific Basin Fund
   T. Rowe Price High Yield Fund                  Fidelity Worldwide Fund
   T. Rowe Price Spectrum Income Fund             Scudder Greater Europe Growth Fund
                                                  Scudder International Fund
                                                  Scudder Japan Fund
   Growth and Income Funds:                       T. Rowe Price International
   Fidelity Balanced Fund                            Discovery Fund
   Fidelity Equity-Income Fund                    T. Rowe Price International Stock
   Fidelity Fund                                     Fund
   Fidelity Global Balanced Fund                  T. Rowe Price Latin America Fund
   Fidelity Growth & Income Portfolio             T. Rowe Price New Asia Fund
   Fidelity Puritan Fund
     Vanguard International Value Fund
   Fidelity Real Estate Investment
     Portfolio
   Fidelity Utilities Fund
   Scudder Growth & Income Fund                   Asset Allocation Funds:
   T. Rowe Price Spectrum Growth Fund             Vanguard LIFEStrategy -
   Vanguard Trust - 500 Portfolio                      Conservative Growth Portfolio
   Vanguard Index Trust - Value                   Vanguard LIFEStrategy - Moderate
     Portfolio                                       Growth Portfolio
                                                  Vanguard LIFEStrategy - Growth
                                                     Portfolio
   Growth Funds:
   Domini Social Equity Fund
     (effective April 1, 2000)
   Fidelity Capital Appreciation Fund
   Fidelity Dividend Growth Fund
   Fidelity Growth Company Fund
   Fidelity Retirement Growth Fund

<PAGE>

   Fidelity Small Cap Selector
   Fidelity Stock Selector
   Fidelity Trend Fund
   Fidelity Value Fund
   Scudder Global Fund
   Scudder Global Discovery Fund
   T. Rowe Price New Era Fund
   T. Rowe Price New Horizons Fund
   Vanguard Explorer Fund
   Vanguard Index Trust - Growth
     Portfolio
</TABLE>
<PAGE>

              FORD MOTOR COMPANY SAVINGS AND STOCK INVESTMENT PLAN
                                       FOR
                               SALARIED EMPLOYEES

                                   Appendix B
                 Participating Employers As of December 1, 1999

                             Ford Motor Company
                             Ford Motor Credit Company
                             AAI Employee Services Company, L.L.C.
                             Ford Global Technologies, Inc.
                             Ford Electronics & Refrigeration Company
                             American Road Services
                             Ford Automotive Components Operations, Inc.
                             Ford International Business Development, Inc.
                             Ford Motor Land Services Corporation

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