Document:

EXHIBIT 10-R

                  FORD MOTOR COMPANY DEFERRED COMPENSATION PLAN
                  (Amended and Restated as of January 1, 2000)

     1.   Purpose. This Plan, which shall be known as the "Ford Motor Company
Deferred Compensation Plan" and is hereinafter referred to as the "Plan", is
intended to provide for the deferment of payment of (i) awards of incentive
compensation under the Ford Motor Company Annual Incentive Compensation Plan
and similar plans, (ii) base salary, (iii) incentive awards payable in cash or
stock under the Ford Motor Company 1990 Long-Term Incentive Plan, Ford Motor
Company 1998 Long-Term Incentive Plan or any other incentive compensation plan
of the Company and (iv) new hire payments.

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

          (a)  The term "AIC Plan" shall mean the Ford Motor Company Annual
Incentive Compensation Pan, as amended.

          (b)  The term "ARC Plan" shall mean the Automotive Rental Corporation
Executive Management Incentive Plan, as amended.

          (c)  The term "Committee" shall mean, unless the context otherwise
requires, the following as they from time to time may be constituted:

               (i)  The Compensation and Option Committee with respect to all
matters affecting any Section 16 Person.

               (ii) The Deferred Compensation Committee with respect to all
matters affecting employees other than Section 16 Persons.

          (d)  The term "Company" when used in the Plan with reference to
employment shall include subsidiaries of the Company.

          (e)  The term "Compensation and Option Committee" shall mean the
Compensation and Option Committee of the Board of Directors of the Company.

          (f)  The term "Deferred Compensation" shall mean compensation
deferred  pursuant to paragraph (a), (b), (c) or (d) of Section 5 hereto, and
any  interest equivalents,

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dividend equivalents or other earnings or return on such amounts determined in
accordance with the Plan.

          (g)  The term "Deferred Compensation Account" with respect to a
participant shall mean the book entry account established by the Company for
such participant with respect to his or her Deferred Compensation.

          (h)  The term "Deferred Compensation Committee" shall mean the
committee comprised of the Vice President - Human Resources, the Group Vice
President and Chief Financial Officer and the Vice President - General Counsel
or such other persons as may be designated members of such Committee by the
Compensation and Option Committee.

          (i)  The term "employee" shall mean any person who is regularly
employed by the Company or a subsidiary at a salary (as distinguished from a
pension, retirement allowance, severance pay, retainer, commission, fee under a
contract or other arrangement, or hourly, piecework or other wage) and is
enrolled on the active employment rolls of the Company or a subsidiary,
including, but without limitation, any employee who also is an officer or
director of the Company or a subsidiary.

          (j)  The term "Ford Stock" shall mean Ford Common Stock.

          (k)  The term "Ford Stock Unit" shall mean a unit having a value
based upon Ford Stock.

          (l)  The term "LTI Plan" shall mean the Ford Motor Company 1990
Long-Term Incentive Plan, as amended, the Ford Motor Company 1998 Long-Term
Incentive Plan, as amended, or any other long-term incentive plans subsequently
adopted by the Company that are substantially similar to such plans.

          (m)  The term "RPM Plan" shall mean the Ford Motor Credit Company
Rewarding Performance Management Plan, as amended.

          (n)  The term "SC Plan" shall mean the Ford Motor Company
Supplemental Compensation Plan, as amended.

          (o)  The term "Section 16 Person" shall mean any employee who is
subject to the reporting requirements of Section 16(a) or the liability
provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended.

          (p)  The term "SSIP" shall mean the Company's Savings and Stock
Investment Plan for Salaried Employees, as amended.

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          (q)  The term "subsidiary" shall mean (i) any corporation a majority
of the voting stock of which is owned directly or indirectly by the Company or
(ii) any limited liability company a majority of the membership interest of
which is owned directly or indirectly by the Company.

     3.   Administration. Except as otherwise herein expressly provided, the
Compensation and Option Committee shall have full power and authority to
construe, interpret and administer the Plan. The Compensation and Option
Committee shall make all decisions relating to matters affecting any Section 16
Person, but may otherwise delegate any of its authority under the Plan. The
Compensation and Option Committee and the Deferred Compensation Committee each
may at any time adopt or terminate, and may from time to time amend, modify or
suspend such rules, regulations, policies and practices as they in their sole
discretion may determine in connection with the administration of, or the
performance of their respective responsibilities under, the Plan.

     4.   Eligibility of Participants; Amounts Deferrable.

          (a)  Participating Subsidiaries and Foreign Location Participants.
The Deferred Compensation Committee shall determine the extent to which
subsidiaries and employees at foreign locations may participate in the Plan or
similar plans and the type and amount of compensation that may be deferred
under, or the type and amount of account balances that may be transferred to,
the Plan pursuant to this paragraph (a).

          (b)  Annual Incentive Compensation Deferrals Under the AIC Plan and
Other Similar Plans. Subject to any limitations determined under paragraph (a)
or paragraph (g) of this Section 4, U.S. employees who receive an award or an
installment of an award payable in cash under the AIC Plan, are eligible to
defer payment under the Plan from 1% to 100%, in 1% increments, of such amount
net of applicable taxes, but not less than $1,000, provided that such employees
are actively employed by the Company in Leadership Level 1-5 or the equivalent
at the time of the election to defer. Notwithstanding the foregoing, the
Compensation and Option Committee may in its sole discretion allow deferrals
under this paragraph (b) by persons that do not meet the eligibility
requirements described above.

          (c)  Base Salary Deferrals. Subject to any limitations determined
under paragraph (a) or paragraph (g) of this Section 4, U.S. employees who are
eligible to participate in the AIC Plan or the RPM Plan, and who are actively
employed by the Company in Leadership Level 1-5 or the equivalent at the time a
salary deferral election is made are eligible to defer payment of from 1% to
50% of base salary in 1% increments, provided that the Compensation and Option
Committee has determined that base salary deferrals may be made for the
employment period covered by such deferral. Notwithstanding the foregoing, the
Compensation and Option Committee may impose such additional limitations on
eligibility as it deems appropriate in its sole discretion.

          (d)  Deferrals of Incentive Compensation. Subject to any limitations
determined under paragraph (a) or paragraph (g) of this Section 4, U.S.
employees who are eligible to participate in the AIC Plan or the RPM Plan, and
who are actively employed by the Company at the time an election is made to
defer payment of an award payable under the LTI Plan or other incentive
compensation plan are eligible to defer payment of from 1% to 100%, in 1%
increments, of such award net of applicable taxes, but not less than $1,000 or
the equivalent value determined at the time of the deferral, provided that the
Compensation and Option Committee has determined that deferrals may be made for
such awards. Notwithstanding the foregoing, the Compensation and Option
Committee may in its sole discretion allow deferrals under this paragraph (d)
by persons that do not meet the eligibility requirements described above.

          (e)  Deferral of Awards under SC Plan. Notwithstanding anything in the
Plan to the contrary, deferrals of awards of supplemental compensation made
under the SC Plan for years 1995-1997 shall be governed by the same provisions
of the Plan that apply to awards of incentive compensation under the AIC Plan.
Any references to the AIC Plan shall be deemed to cover awards under the SC
Plan.

          (f)  Deferral of New Hire Payments. Notwithstanding anything
contained in the Plan to the contrary, subject to any limitations determined
under paragraph (a) or paragraph (e) of this Section 4, newly hired U.S.
employees who are eligible to participate in the AIC Plan or the RPM Plan, and
who received an employment offer from the Company that included a new hire
payment in cash are eligible to defer payment from 1% to 100%, in 1% increments,
of such new hire payment net of applicable taxes, but not less than $1,000,
provided that such employees are actively employed by the Company in Leadership
Level 1-5 or the equivalent at the time the new hire payment would otherwise be
payable in the absence of such deferral.

          (g)  Eligibility of Compensation and Option Committee Members. No
person while a member of the Compensation and Option Committee shall be
eligible to participate under the Plan.

          (h)  Transfer of Deferral Accounts from SC Plan. Effective as of the
close of business on October 16, 1998, all outstanding book entry accounts
maintained under the SC Plan in the form of contingent credits for cash and/or
Ford Common Stock shall be transferred to the Plan and governed by the
provisions of the Plan. Upon such transfer, contingent credits for cash shall
be valued based on the Fidelity Retirement Money Market Portfolio and
contingent credits for Ford Common Stock shall be valued based on the Ford
Stock Fund until such time, if any, as all or any part of such amounts are
transferred by the applicable participants to other investment options
available under the Plan. Ultimate payout of a transferred deferral account
shall be in cash, except that, to the extent that the transferred account is
valued based on the Ford Stock

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                                       5

Fund, the participant may make an election prior to the transfer of the account
to receive the ultimate payout in whole shares of Common Stock.

     5.   Deferral Elections.

          (a)  Annual Incentive Compensation Deferrals. A participant's
decision to defer payment of annual incentive compensation under paragraph (b)
of Section 4 under the Plan must be made prior to October 31 of the performance
year for which the compensation is determined.

          (b)  Base Salary Deferrals. A participant's decision to defer payment
of base salary under the Plan must be made prior to the calendar year during
which the base salary will be earned; provided, however, that such decision may
be made with respect to base salary earned during the first calendar year that
base salary deferrals are permitted under the Plan within thirty days of
implementation of the base salary component of the Plan but prior to earning
any such salary.

          (c)  Incentive Compensation Deferrals. Subject to the limitations set
forth in Section 4 hereof, the Compensation and Option Committee shall
determine the required timing for participants to make elections to defer
payment of awards payable only in cash under the LTI Plan or other incentive
compensation plan.

          (d)  New Hire Payment Deferrals. A participant's decision to defer
payment of a new hire payment must be made no later than the day the payment
would otherwise be made.

          (e)  Mandatory Deferrals. The Compensation and Option Committee may
mandatorily defer payment under the Plan of a portion of certain annual
incentive compensation awards pursuant to the AIC Plan. The Compensation and
Option Committee may determine the extent to which it may mandatorily defer
payment under the Plan of compensation payable only in cash under the LTI Plan
or other incentive compensation plan.

          (f)  Deferred Compensation Accounts. Amounts deferred pursuant to
paragraphs (a), (b), (c), (d) or (e) of Section 5, and deferral amounts
relating to any transfer to the Plan pursuant to paragraph (h) of Section 4,
will be credited by book entry to the participant's Deferred Compensation
Account. All such amounts shall be held in the general funds of the Company.
Each participant shall have the status of an unsecured general creditor of the
Company with respect to his or her Deferred Compensation Account. The
participant shall designate the percentage of the amount elected for deferral
to be allocated to each investment option available under the Plan for purposes
of accounting only and not for actual investment. In addition, with respect to
any particular deferral under the Plan, the participant shall elect (i) the
year in which distribution shall be made or distribution upon retirement and
(ii) the method of

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distribution desired with respect to any such deferral election if the
participant elected distribution upon retirement, i.e., in a lump sum payment
or in up to ten annual installments.

     6.   Investment Options; Methodology; No Ownership Rights.

          (a)  General. Unless otherwise delegated to the Deferred Compensation
Committee, the Compensation and Option Committee has the sole discretion to
determine the investment options available as the measurement mechanism for
deferrals and redesignations under the Plan, the manner and extent to which
elections may be made, the method of valuing the various investment options and
the Deferred Compensation Accounts and the method of crediting the Deferred
Compensation Accounts with, or making other adjustments as a result of,
dividend equivalents, interest equivalents or other earnings or return on such
Accounts.

          (b)  Investment Options. Unless otherwise determined by the
Compensation and Option Committee, the investment options available as the
measurement mechanism for deferrals and redesignations under the Plan shall be
some or all of those provided in the Company's SSIP.

          (c)  Methodology. Unless otherwise determined by the Compensation and
Option Committee, the methodology for valuing the various investment options
and the Deferred Compensation Accounts and for calculating amounts to be
credited or debited or other adjustments to any Deferred Compensation Account
with respect to any investment options shall be the same as that used under the
SSIP.

          (d)  No Ownership Rights. Investment options available under the Plan
shall be used solely for measuring the value of Deferred Compensation Accounts
and accounting, on a book entry basis, as if the deferred amounts had been
invested in actual investments, but no such investments shall be made on behalf
of participants. Participants shall not have any voting rights or any other
ownership rights with respect to the investment options selected as the
measuring mechanism for their Deferred Compensation Accounts.

     7.   Redesignation Within a Deferred Compensation Account.

          (a)  General. Except as otherwise provided in paragraph (f) of this
Section 7, a participant or the beneficiary or legal representative of a
deceased participant, may redesignate amounts credited to a Deferred
Compensation Account among the investments available under the Plan. No
redesignations relating to a particular deferral may occur on or after the
scheduled distribution date for the deferral under the Plan.

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                                       7

          (b)  Eligible Participants. Active employees and retired participants
are eligible to redesignate.

          (c)  Permitted Frequency. Redesignations may be made at the same
frequency as transfers may be made under the SSIP.

          (d)  Amount of Redesignation. Any redesignation relating to a
particular deferral shall be in a specified percentage or dollar amount of the
investment option from which the redesignation is being made.

          (e)  Timing. Redesignation shall occur on the day the participant's
written redesignation election form or telephonic election is received by the
Company or its agent designated for this purpose; provided, however, that if
such redesignation request is received after 4 p.m. Eastern Time, or on a day
that is not a business day (i.e., a day that either the Company's World
Headquarters offices in Dearborn, Michigan or the principal offices of its
designated agent are not open to the public for business), then such
redesignation shall be effective on the next business day.

          (f)  Limitations on Redesignations Involving Ford Stock Units. The
Committee in its sole discretion at any time may rescind a redesignation in or
out of Ford Stock Units if such redesignation was made by a participant who (i)
at the time of the redesignation the Committee believes was in the possession
of material, nonpublic information with respect to the Company and (ii) in the
Committee's estimation benefited from such information by the timing of his or
her redesignation. In the event of a rescission, the participant's Deferred
Compensation Account shall be restored to a status as though such redesignation
had not occurred.

     8.   Adjustments. In the event of a reorganization, recapitalization,
stock split, stock dividend, combination of shares, merger, consolidation,
rights offering or any other change in the corporate structure of the Company
or shares of Ford Stock or units of any other investment option provided under
the Plan, the Compensation and Option Committee shall make such adjustments, if
any, as it may deem appropriate in the number of Ford Stock Units, shares of
Ford Stock represented by Ford Stock Units or shares or units of other
investment options credited to participants' Deferred Compensation Accounts.

     9.   Distribution of Deferred Compensation; Financial Hardship.

          (a)  General. Except as otherwise provided in paragraph (b) of this
Section 9 or in Section 11, or as otherwise determined by the Committee,
distribution of all or any part of a participant's Deferred Compensation
Account shall be made on, or as soon thereafter as practicable, (i) March 15 of
the year selected by the participant for distribution with respect to the
particular deferral if the participant is an active employee of the Company on
the distribution

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                                       8

date, (ii) the March 15 following death or termination for
reasons other than retirement, notwithstanding any prior selection by the
participant of a subsequent year for distribution with respect to the
particular deferral, (iii) the March 15 following retirement if the participant
selected distribution upon retirement with respect to the particular deferral
and a lump sum distribution was selected, or if the participant selected a
particular year for distribution with respect to the particular deferral but
retired prior to the year selected, or (iv) the March 15 following retirement
with respect to the first annual installment and continuing on the applicable
number of consecutive anniversaries of such date if no more than ten annual
installments were selected by the participant with respect to the particular
deferral. Unless otherwise determined by the Committee, a Deferred Compensation
Account or part thereof relating to a particular distribution shall be valued,
for purposes of the distribution, as of the following applicable date or as soon
thereafter as practicable: March 15 of the year of distribution or the next
preceding day for which valuation information is available.

          (b)  Financial Hardship. At the written request of a participant, the
Committee, in its sole discretion, may authorize the cessation of deferrals
under the Plan by such participant and distribution of all or any part of the
participant's Deferred Compensation Account prior to his or her scheduled
distribution date or dates, or accelerate payment of any installment payable
with respect to Deferred Compensation, upon a showing of unforeseeable
emergency by the participant. For purposes of this paragraph, "unforeseeable
emergency" shall mean severe financial hardship resulting from extraordinary
and unforeseeable circumstances arising as a result of one or more recent
events beyond the control of the participant. In any event, payment shall not
be made to the extent such emergency is or may be relieved (i) through
reimbursement or compensation by insurance or otherwise, (ii) by liquidation of
the participant's assets, to the extent the liquidation of such assets would
not itself cause severe financial hardship and (iii) by cessation of deferrals
under the Plan. Withdrawals of amounts because of unforeseeable emergency shall
only be permitted to the extent reasonably necessary to satisfy the emergency.
Examples of what are not considered to be unforeseeable emergencies include the
need to send a participant's child to college or the desire to purchase a home.
The Committee shall determine the applicable distribution date and the date as
of which the amount to be distributed shall be valued with respect to any
financial hardship withdrawal or distribution made pursuant to this paragraph
(b) of this Section 9. Any participant whose deferrals have ceased under the
Plan pursuant to this paragraph may not elect to recommence deferrals until the
next applicable deferral period.

     10.  Designation of Beneficiaries and Effect of Death.

          (a)  Designation of Beneficiaries. A participant may file with the
Company a written designation of a beneficiary or beneficiaries (subject to
such limitations as to the classes and number of beneficiaries and contingent
beneficiaries and such other limitations as the Compensation and Option
Committee from time to time may prescribe) to receive, in the event
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                                       9

of the death of the participant, undistributed amounts of Deferred Compensation
that would have been payable to such participant had he or she been living. A
participant shall be deemed to have designated as beneficiary or beneficiaries
under the Plan the person or persons who receive such participant's life
insurance proceeds under the Company-paid basic Life Insurance Plan unless such
participant shall have assigned such life insurance or shall have filed with
the Company a written designation of a different beneficiary or beneficiaries
under the Plan. A participant may from time to time revoke or change any such
designation of beneficiary and any designation of beneficiary under the Plan
shall be controlling over any testamentary or other disposition; provided,
however, that if the Committee shall be in doubt as to the right of any such
beneficiary to receive any such payment, or if applicable law requires the
Company to do so, the same may be paid to the legal representatives of the
participant, in which case the Company, the Committee and the members thereof
shall not be under any further liability to anyone.

          (b)  Distribution Upon Death. Subject to the provisions of Section 9
hereof, in the event of the death of any participant prior to distribution of
all or part of such participant's Deferred Compensation Account, the total
value of such participant's entire Deferred Compensation Account shall be
distributed in cash, except as otherwise provided in paragraph (h) of Section
4, in one lump sum in accordance with paragraph (a) of Section 9 to any
beneficiary or beneficiaries designated or deemed designated by the participant
pursuant to paragraph (a) of this Section 10 who shall survive such participant
(to the extent such designation is effective and enforceable at the time of
such participant's death) or, in the absence of such designation or such
surviving beneficiary, or if applicable law requires the Company to do so, to
the legal representative of such person, at such time (or as soon thereafter as
practicable) and otherwise as if such person were living and had fulfilled all
applicable conditions as to earning out set forth in, or established pursuant
to the Plan, provided such conditions shall have been fulfilled by such person
until the time of his or her death.

     11.  Effect of Inimical Conduct. Anything contained in the Plan
notwithstanding, all rights of a participant under the Plan to receive
distribution of all or any part of his or her Deferred Compensation Account
shall cease on and as of the date on which it has been determined by the
Committee that such participant at any time (whether before or subsequent to
termination of such participant's employment) acted in a manner inimical to the
best interests of the Company.

     12.  Limitations. A participant shall not have any interest in any
Deferred Compensation credited to his or her Deferred Compensation Account
until it is distributed in accordance with the Plan. All amounts deferred under
the Plan shall remain the sole property of the Company, subject to the claims
of its general creditors and available for use for whatever purposes are
desired. With respect to Deferred Compensation, a participant shall be merely a
general creditor of the Company and the obligation of the Company hereunder
shall be purely contractual and shall not be funded or secured in any way. The
Plan shall not constitute part of
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                                       10

any participant's or employee's employment contract with the Company or any
participating subsidiary. Participation in the Plan shall not create or imply a
right to continued employment.

     13.  Annual Statements of Account. Account statements shall be sent to
participants as soon as practicable following the end of each year as to the
balances of their respective Deferred Compensation Accounts as of the end of
the previous calendar year.

     14.  Withholding of Taxes. The Company shall have the right to withhold an
amount sufficient to satisfy any federal, state or local income taxes or FICA
or medicare taxes that the Company may be required by law to pay with respect
to any Deferred Compensation Account, including withholding payment from a
participant's current compensation.

     15.  No Assignment of Benefits. No rights or benefits under the Plan
shall, except as otherwise specifically provided by law, be subject to
assignment (except for the designation of beneficiaries pursuant to paragraph
(a) of Section 10), nor shall such rights or benefits be subject to attachment
or legal process for or against a participant or his or her beneficiary or
beneficiaries, as the case may be.

     16.  Administration Expense. The entire expense of offering and
administering the Plan shall be borne by the Company and its participating
subsidiaries.

     17.  Amendment, Modification, Suspension and Termination of the Plan;
Rescissions and Corrections. The Compensation and Option Committee, at any time
may terminate, and at any time and from time to time, and in any respect, may
amend or modify the Plan or suspend any of its provisions; provided, however,
that no such amendment, modification, suspension or termination shall, without
the consent of a participant, adversely affect such participant's rights with
respect to amounts credited to or accrued in his or her Deferred Compensation
Account. The Committee at any time may rescind or correct any deferrals or
credits to any Deferred Compensation Account made in error or that jeopardize
the intended tax status or legal compliance of the Plan.

     18.  Indemnification and Exculpation.

          (a)  Indemnification. Each person who is or shall have been a member
of the Compensation and Option Committee or a member of the Deferred
Compensation Committee 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 such person in connection with or
resulting from any claim, action, suit or proceeding to which such person may
be or become a party or in which such person may be or become involved by
reason of any action taken or failure to act under the Plan and against and
from any and all amounts paid by such person in settlement thereof (with the
Company's written approval) or paid by such person
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                                       11

in satisfaction of a judgment in any such action, suit or proceeding, except a
judgment in favor of the Company based upon a finding of such person's lack of
good faith; subject, however, to the condition that upon the institution of any
claim, action, suit or proceeding against such person, such person shall in
writing give the Company an opportunity, at its own expense, to handle and
defend the same before such person undertakes to handle and defend it on such
person's 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 the Company may have to indemnify or hold such
person harmless.

          (b)  Exculpation. Each member of the Compensation and Option
Committee and each member of the Deferred Compensation Committee shall be fully
justified in relying or acting in good faith upon any information furnished in
connection with the administration of the Plan or any appropriate person or
persons other than such person. In no event shall any person who is or shall
have been a member of the Compensation and Option Committee or a member of the
Deferred Compensation Committee be held liable for any determination made or
other action taken or any omission to act in reliance upon any such information,
or for any action (including the furnishing of information) taken or any
failure to act, if in good faith.

     19.  Finality of Determinations. Each determination, interpretation or
other action made or taken pursuant to the provisions of the Plan by the
Compensation and Option Committee or the Deferred Compensation Committee shall
be final and shall be binding and conclusive for all purposes and upon all
persons, including, but without limitation thereto, the Company, its
stockholders, the Compensation and Option Committee and each of the members
thereof, the Deferred Compensation Committee and each of the members thereof,
and the directors, officers, and employees of the Company, the Plan
participants, and their respective successors in interest.

     20.  Governing Law. The Plan shall be governed by and construed in
accordance with the laws of the State of Michigan.EXHIBIT 10-T

              FORD MOTOR COMPANY ANNUAL INCENTIVE COMPENSATION PLAN
                  (Amended and Restated as of January 1, 2000)

     1.  Purpose. This Plan, which shall be known as the "Ford Motor Company
Annual Incentive Compensation Plan" and is hereinafter referred to as the
"Plan", is intended to provide annual incentive compensation to Plan
participants based on the achievement of established performance objectives.

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

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

     (b)  The term "Annual Incentive Compensation Committee" shall mean the
committee comprised of two or more officers of the Company designated members
of such Committee by the Compensation and Option Committee.

     (c)  The term "Award" shall mean the cash compensation awarded under the
Plan with respect to a Performance Period to a participant eligible under
Section 5(b).

     (d)  The term "Committee" shall mean, unless the context otherwise
requires:

          (i)  The Compensation and Option Committee for all matters affecting
any Section 16 Person.

          (ii) The Annual Incentive Compensation Committee for all matters
affecting employees other than Section 16 Persons.

     (e)  The term "Company" or "Ford" generally shall mean Ford Motor Company.
When used in the Plan with respect to employment, the term "Company" shall
include subsidiaries of the Company.

     (f)  The term "Compensation and Option Committee" shall mean the
Compensation and Option Committee of the Board of Directors of the Company.

     (g)  The term "Covered Employee" shall mean a Key Employee who is a
"covered employee" within the meaning of Section 162(m) of the Internal Revenue
Code of 1986, as amended.

     (h)  The term "DC Plan" shall mean the Company's Deferred Compensation
Plan, as amended.
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                                       2

     (i)  The term "Employee'" shall mean any person who is regularly employed
by the Company or one of its Subsidiaries at a salary (as distinguished from a
pension, retirement allowance, severance pay, retainer, commission, fee under a
contract or other arrangement, or hourly, piecework or other wage) and is
enrolled on the active employment rolls of the Company or a Subsidiary in
Leadership Level 1-5 or the equivalent, including, but without limitation, any
employee who also is an officer or director of the Company or one of its
Subsidiaries.

     (j)  The term "Exceptional Contribution Fund" shall mean, with respect to
Awards for a Performance Period, the dollar amount designated by the
Compensation and Option Committee pursuant to Section 13 for purposes of
increasing the amount of Awards to be made to participants who are not Covered
Employees based on exceptional individual, unit, group or Company performance.

     (k)  The term "Key Employee" shall mean an Employee of the Company
determined by the Committee to be a Key Employee for purposes of the Plan.

     (l)  The term "Maximum Award Pool" shall mean the maximum aggregate amount
of all Awards which may be made to participants for a Performance Period
determined by the Compensation and Option Committee pursuant to Section 12.

     (m)  The term "Maximum Individual Award" shall mean the maximum amount of
an Award to a Covered Employee for a Performance Period, as set forth in
Section 10.

     (n)  The term "participant" shall mean a Key Employee selected by the
Committee to participate in the Plan for a Performance Period.

     (o)  The term "Performance Criteria" shall mean, with respect to any Award
for a Performance Period that may be made to a participant who is a Covered
Employee, one or more of the following objective business criteria established
by the Compensation and Option Committee with respect to the Company and/or any
Subsidiary, division, business unit or component thereof upon which the
Performance Goals for a Performance Period are based: asset charge, asset
turnover, automotive return on sales, capacity utilization, capital employed in
the business, capital spending, cash flow, cost structure improvements,
complexity reductions, customer loyalty, diversity, earnings growth, earnings
per share, economic value added, environmental health and safety, facilities
and tooling spending, hours per vehicle, increase in customer base, inventory
turnover, market price appreciation, market share, net cash balance, net
income, net income margin, net operating cash flow, operating profit margin,
order to delivery time, plant capacity, process time, profits before tax,
quality/customer satisfaction, return on assets, return on capital, return on
equity, return on net operating assets, return on sales, revenue growth,
sales margin, sales volume, total shareholder return, vehicles per employee,
warranty performance to budget, variable margin and working capital. The term
"Performance Criteria" shall mean, with respect to any Award that may be made
to a participant who is not a Covered Employee, one or more of the business
criteria applicable to Covered Employees for the Performance Period and any
other criteria based on individual, business unit, group or Company performance
selected by the Compensation and Option Committee.
<PAGE>

                                       3

     (p)  The term "Performance Goals" shall mean the one or more goals
established by the Compensation and Option Committee based on one or more
Performance Criteria pursuant to Section 7 for the purpose of measuring
performance in determining the amount, if any, of an Award for a Performance
Period.

     (q)  The term "Performance Formula" shall mean, with respect to a
Performance Period, the one or more objective formulas established by the
Compensation and Option Committee pursuant to Section 7 and applied against
the Performance Goals in determining whether and the extent to which Awards
have been earned for the Performance Period.

     (r)  The term "Performance Period" or "Period" shall mean, with respect to
which a particular Award may be made under the Plan, the Company's fiscal year
or other twelve consecutive month period designated by the Compensation and
Option Committee for the purpose of measuring performance against Performance
Goals.

     (s)  The term "Pro Forma Award Amount" shall mean, with respect to an
Award to be made for a Performance Period, the amount determined by the
Committee pursuant to Section 9.

     (t)  The term "SC Plan" shall mean the Company's Supplemental Compensation
Plan, as amended.

     (u)  The term "Section 16 Person" shall mean any employee who is subject
to the reporting requirements of Section 16(a) or the liability provisions of
Section 16(b) of the Securities Exchange Act of 1934, as amended.

     (v)  The term "Subsidiary" shall mean (i) any corporation a majority of
the voting stock of which is owned or controlled, directly or indirectly, by
the Company or (ii) any limited liability company a majority of the membership
interest of which is owned or controlled, directly or indirectly, by the
Company.

     (w)  The term "Target Award" shall mean, with respect to a Performance
Period, the Target Award amount established for each applicable Leadership
Level, band or other group of participants by the Committee pursuant to Section
6 hereof.

     (x)  The term "Total Pro Forma Award Pool" shall mean, with respect to
Awards for a Performance Period, the amount described in Section 11.

     3. Effective Date. The Plan shall be effective as of January 1, 1998.

     4. Administration. Except as otherwise expressly provided, the
Compensation and Option Committee shall have full power and authority to
construe, interpret and administer the Plan. The Compensation and Option
Committee shall make all decisions relating to matters affecting Section 16
Persons, but may otherwise delegate any of its authority under the Plan. The
Compensation and Option Committee and the Annual Incentive Compensation
Committee each may at any time adopt or terminate, and may from time to time,
amend, modify or suspend such rules, regulations, policies and practices
<PAGE>

                                       4

as they in their sole discretion may determine in connection with the
administration of, or the performance of their respective responsibilities
under, the Plan.

     5. Eligibility.

     (a)  Eligibility to Participate. All Key Employees are eligible to be
selected to participate in the Plan. The Committee shall, in its sole
discretion, designate which Key Employees will be participants for the
applicable Performance Period.

     (b)  Eligibility for Awards. An Award with respect to a Performance Period
may be made pursuant to Section 14 of the Plan to (i) participants for such
Performance Period who shall have been an employee at any time during such
Performance Period, or to (ii) the beneficiary or beneficiaries or legal
representatives, as the Committee in its sole discretion shall determine, of
any such person whose employment shall have been terminated by reason of his or
her death during such Performance Period.

     (c)  Eligibility of Compensation and Option Committee Members. No person
while a member of the Compensation and Option Committee shall be eligible to
participate under the Plan or receive an Award.

     6. Determination of Target Awards. Within 90 days of the commencement of a
Performance Period, the Committee shall establish the Target Award for each
applicable Leadership Level, band or other group of Key Employees selected to
participate in the Plan with respect to a Performance Period, subject to any
limitations established by the Compensation and Option Committee. The fact that
a Target Award is established for a participant's Leadership Level, band or
other group for a Performance Period shall not entitle such participant to
receive an Award.

     7.  Selection of Performance Criteria and Establishment of Performance
Goals and Performance Formula; Minimum Threshold Objective. Within 90 days of
the commencement of a Performance Period, the Compensation and Option Committee
shall select the Performance Criteria and establish the related Performance
Goals be used to measure performance for a Performance Period and the
Performance Formula to be used to determine what portion, if any, of an Award
has been earned for the Performance Period. The Performance Criteria may be
expressed in absolute terms or relate to the performance of other companies or
to an index. Within that same 90 day period, the Compensation and Option
Committee may establish a minimum threshold objective for any Performance Goal
for any Performance Period, which if not met, would result in no Award being
made to any participant with such Performance Goal for such Performance Period.

     8.  Adjustments to Performance Goals, Performance Formula or Performance
Criteria. For purposes of determining Awards for participants who are not
Covered Employees, the Compensation and Option Committee may adjust or modify
any of the Performance Goals, Performance Formula and/or the Performance
Criteria for any Performance Period in order to prevent the dilution or
enlargement of the rights of such participants under the Plan (i) in the event
of, or in anticipation of, any unusual or extraordinary item, transaction,
event or development, (ii) in recognition of, or in anticipation of, any other
unusual or nonrecurring event affecting the Company or the
<PAGE>

                                       5

financial statements of the Company or Ford Credit, or in anticipation of,
changes in applicable laws, regulations, accounting principles or business
conditions, and (iii) for any other reason or circumstance deemed relevant to
the Compensation and Option Committee in its sole discretion.

     9.  Determination of Pro Forma Award Amount. As soon as practicable
following the end of a Performance Period, the Committee shall determine the
Pro Forma Award Amount for any Award to be made to a participant for a
Performance Period by applying the applicable Performance Formula for the
participant for the Performance Period against the accomplishment of the
related Performance Goals for such participant.

     10.  Maximum Individual Award for Covered Employees. The Maximum
Individual Award for a Performance Period to a participant who is a Covered
Employee is $10,000,000.

     11.  Total Pro Forma Award Pool. The Total Pro Forma Award Pool for all
Awards for a Performance Period shall equal the sum of the Pro Forma Award
Amounts for all participants for the Performance Period.

     12.  Determination of Maximum Award Pool. The Compensation and Option
Committee shall determine the amount of the Maximum Award Pool for a
Performance Period which shall not exceed the sum of the Total Pro Forma
Award Pool plus the amount of the Exceptional Contribution Fund for such Period.

     13.  Determination of Exceptional Contribution Fund. The Compensation and
Option Committee shall determine the amount of the Exceptional Contribution
Fund which may be used for increasing the size of Awards for a Performance
Period above the applicable Pro Forma Award Amount to participants who are not
Covered Employees. Unless otherwise determined by the Compensation and Option
Committee, the amount of the Exceptional Contribution Fund shall not exceed 15%
of the Total Pro Forma Award Pool for the applicable Performance Period.

     14.  Determination of Individual Awards. Subject to achievement of any
applicable minimum threshold objectives established under Section 7,
fulfillment of the conditions set forth in Section 17 and compliance with the
Maximum Individual Award limitation under Section 10 and the eligibility
requirements set forth in paragraph (b) of Section 5, the Committee shall, as
soon as practicable following the end of a Performance Period, determine the
amount of each Award to be made to a participant under the Plan for the
Performance Period, which amount shall, except as otherwise provided below, be
the Pro Forma Award Amount determined for such participant for such Period
pursuant to Section 9. The Committee may in its sole discretion reduce the
amount of any Award that otherwise would be awarded to any participant for any
Performance Period. In addition, the Committee may in its sole discretion
increase the amount of any Award that otherwise would be awarded to any
participant who is not a Covered Employee for a Performance Period to an amount
that is higher than the applicable Pro Forma Award Amount based on exceptional
individual, unit, group or Company performance; provided, however, that the
total amount of all Awards made for a Performance Period shall not exceed the
related Maximum Award Pool. Individual Award amounts may be less than or
greater than 100%
<PAGE>

                                       6

of the related Target Award. The determinations by the Annual Incentive
Compensation Committee of individual Award amounts for Employees who are not
Section 16 Persons shall be subject to a maximum funding amount and any other
limitations specified by the Compensation and Option Committee. Notwithstanding
anything contained in the Plan to the contrary, the Committee may determine in
its sole discretion not to make an Award to a particular participant or to all
participants selected to participate in the Plan for any Performance Period.

     15.  Distribution and Form of Awards.

     (a)  General. Except as otherwise provided in paragraph (b) or (c) of this
Section 15 or in Section 17, distribution of Awards for a Performance Period
shall be made on or as soon as practicable after the distribution date for such
Awards determined by the Compensation and Option Committee, which date shall in
no event be later than the March 15 following the end of the applicable
Performance Period, and shall be payable in cash.

     (b)  Deferral of Awards. Subject to the terms, conditions and eligibility
requirements of the DC Plan, Key Employees who receive an Award under the Plan
are eligible to defer payment of all or part of such Award under the DC Plan
under the same terms as if such Award had been an award of supplemental
compensation made under the SC Plan.

     (c)  Mandatory Deferral of Awards. The Compensation and Option Committee
shall determine whether and the extent to which any Awards under the Plan will
be mandatorily deferred and the terms of any such deferral. Unless otherwise
determined by the Compensation and Option Committee, Awards may be mandatorily
deferred by such Committee in the same manner as if they had been awards of
supplemental compensation made under the SC Plan.

     16.  Designation of Beneficiaries and Effect of Death.

     (a)  Designation of Beneficiaries. A participant may file with the Company
a written designation of a beneficiary or beneficiaries (subject to such
limitations as to the classes and number of beneficiaries and contingent
beneficiaries and such other limitations as the Compensation and Option
Committee from time to time may prescribe) to receive, in the event of the
death of the participant, undistributed amounts of any Award that would have
been payable to such participant had he or she been living and that was not
deferred under any Company deferral arrangement or plan. A participant shall be
deemed to have designated as beneficiary or beneficiaries under the Plan the
person or persons who receive such participant's life insurance proceeds
under the basic Company Life Insurance Plan unless such participant shall have
assigned such life insurance or shall have filed with the Company a written
designation of a different beneficiary or beneficiaries under the Plan. A
participant may from time to time revoke or change any such designation of
beneficiary and any designation of beneficiary under the Plan shall be
controlling over any testamentary or other disposition; provided, however, that
if the Committee shall be in doubt as to the right of any such beneficiary to
receive any such payment, or if applicable law requires the Company to do so,
the same may be paid to the legal representatives of
<PAGE>

                                       7

the participant, in which case the Company, the Committee and the members
thereof shall not be under any further liability to anyone.

     (b)  Distribution Upon Death. Subject to the provisions of Section 15,
paragraph (a) of this Section 16 and, if applicable, the DC Plan or any other
deferral plan or arrangement, in the event of the death of any participant
prior to distribution of an Award, the total value of such participant's Award
shall be distributed in cash in one lump sum in accordance with paragraph (a)
of Section 15 to any beneficiary or beneficiaries designated or deemed
designated by the participant pursuant to paragraph (a) of this Section 16 who
shall survive such participant (to the extent such designation is effective and
enforceable at the time of such participant's death) or, in the absence of such
designation or such surviving beneficiary, or if applicable law requires the
Company to do so, to the legal representative of such person, at such time (or
as soon thereafter as practicable) and otherwise as if such person were living
and had fulfilled all applicable conditions as to earning out set forth in, or
established pursuant to Section 17 and, if applicable, the DC Plan or any other
deferral plan or arrangement, provided such conditions shall have been
fulfilled by such person until the time of his or her death.

     17.  Conditions to Payment of Awards.

     (a)  Effect of Competitive Activity. Anything in the Plan notwithstanding,
and subject to paragraph (c) hereof and, if applicable, any conditions under
the DC Plan or any other deferral plan or arrangement relating to payment of an
Award, if the employment of any participant shall terminate, for any reason
other than death, prior to the distribution date established pursuant to
paragraph (a) of Section 15 for payment of an Award, such participant shall
receive payment of an Award only if, during the entire period from the making
of an Award until such distribution date, such participant shall have earned
out such Award

     (i)  by continuing in the employ of the Company or a Subsidiary thereof, or

     (ii)  if his or her employment shall have been terminated for any reason
other than death, by (a) making himself or herself available, upon request, at
reasonable times and upon a reasonable basis, to consult with, supply
information to and otherwise cooperate with the Company or any Subsidiary
thereof with respect to any matter that shall have been handled by him or her
or under his or her supervision while he or she was in the employ of the
Company or any Subsidiary thereof, and (b) refraining from engaging in any
activity that is directly or indirectly in competition with any activity of the
Company or any Subsidiary thereof.

     (b)  Nonfulfillment of Competitive Activity Conditions; Waiver of
Conditions Under the Plan. In the event of a participant's nonfulfillment of
any condition set forth in paragraph (a) above, such participant's rights under
the Plan to receive or defer payment of an Award under the Plan shall be
forfeited and canceled; provided, however, that the nonfulfillment of such
condition may at any time (whether before, at the time of or subsequent to
termination of employment) be waived in the following manner:
<PAGE>

                                       8

     (i)  with respect to a participant who at any time shall have been a
Section 16 Person, such waiver may be granted by the Compensation and Option
Committee upon its determination that in its sole judgment there shall not have
been and will not be any substantial adverse effect upon the Company or any
Subsidiary thereof; and

     (ii)  with respect to any other participant, such waiver may be granted by
the Annual Incentive Compensation Committee (or any committee appointed by it)
upon its determination that in its sole judgment there shall not have been and
will not be any such substantial adverse effect.

     (c)  Effect of Inimical Conduct. Anything in the Plan to the contrary, the
right of a participant, following termination of such participant's employment
with the Company, to receive payment or to defer payment of an Award under
Section 15 shall terminate on and as of the date on which it his been
determined that such participant at any time (whether before or subsequent to
termination of such participant's employment) acted in a manner inimical to the
best interests of the Company. Any such determination shall be made by (i) the
Compensation and Option Committee with respect to any participant who at any
time shall have been a Section 16 Person, and (ii) the Annual Incentive
Compensation Committee (or any committee appointed by it for the purpose) with
respect to any other participant. Such Committee (or any such other committee)
may make such determination at any time prior to payment in full of an Award.
Conduct which constitutes engaging in any activity that is directly or
indirectly in competition with any activity of the Company or any Subsidiary
thereof shall be governed by paragraph (a)(ii) of this Section 17 and shall not
be subject to any determination under this paragraph (c).

     18.  Limitations. A participant shall not have any interest in any Award
until it is distributed in accordance with the Plan. The fact that a Key
Employee has been selected to be a participant for a Performance Period shall
not in any manner entitle such participant to receive an Award for such period.
The determination as to whether or not such participant shall be paid an Award
for such Performance Period shall be determined solely in accordance with the
provisions of Sections 14 and 17 hereof. All payments and distributions to be
made thereunder shall be paid from the general assets of the Company. Nothing
contained in the Plan, and no action taken pursuant to its provisions, shall
create or be construed to create a trust of any kind, or a fiduciary
relationship between the Company and any employee, former employee or any other
person. The Plan shall not constitute part of any participant's or employee's
employment contract with the Company or any participating subsidiary.
Participation in the Plan shall not create or imply a right to continued
employment.

     19.  Withholding of Taxes, etc. The Company shall have the right to
withhold an amount sufficient to satisfy any federal, state or local income
taxes, FICA or Medicare taxes or other amounts that the Company may be required
by law to pay with respect to any Award, including withholding payment from a
participant's current compensation.

     20.  No Assignment of Benefits. No rights or benefits under the Plan
shall, except as otherwise specifically provided by law, be subject to
assignment (except for the designation of beneficiaries pursuant to paragraph
(a) of Section 16), nor shall such rights
<PAGE>

                                       9

or benefits be subject to attachment or legal process for or against a
participant or his or her beneficiary or beneficiaries, as the case may be.

     21.  Administration Expense. The entire expense of offering and
administering the Plan shall be borne by the Company and its participating
Subsidiaries.

     22.  Access of Independent Certified Public Accountants and Committee to
Information. The Company's independent certified public accountants shall have
full access to the books and records of the Company and its Subsidiaries, and
the Company shall furnish to such accountants such information as to the
financial condition and operations of the Company and its Subsidiaries as such
accountants may from time to time request, in order that such accountants may
take any action required or requested to be taken by them under the Plan. The
Group Vice President and Chief Financial Officer or, in the event of his or her
absence or disability to act, the principal accounting officer of the Company
shall furnish to the Committee such information as the Committee may request to
assist it in carrying out or interpreting this Plan. Neither such accountants,
in reporting amounts required or requested under the Plan, nor the Group Vice
President and Chief Financial Officer, or any other director, officer or
employee of the Company, in furnishing information to such accountants or to
the Committee, shall be liable for any error therein, if such accountants or
other person, as the case may be, shall have acted in good faith.

     23.  Amendment, Modification, Suspension and Termination of the Plan;
Rescissions and Corrections. The Compensation and Option Committee, at any time
may terminate, and at any time and from time to time, and in any respect, may
amend or modify the Plan or suspend any of its provisions; provided, however,
that no such amendment, modification, suspension or termination shall, without
the consent of a participant, adversely affect any right or obligation with
respect to any Award theretofore made. The Committee at any time may rescind or
correct any actions made in error or that jeopardize the intended tax status or
legal compliance of the Plan.

     24.  Indemnification and Exculpation.

     (a)  Indemnification. Each person who is or shall have been a member of
the Compensation and Option Committee or a member of the Annual Incentive
Compensation Committee 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 such person in connection with or
resulting from any claim, action, suit or proceeding to which such person may
be or become a party or in which such person may be or become involved by
reason of any action taken or failure to act under the Plan and against and
from any and all amounts paid by such person in settlement thereof (with the
Company's written approval) or paid by such person in satisfaction of a
judgment in any such action, suit or proceeding, except a judgment in favor of
the Company based upon a finding of such person's lack of good faith; subject,
however, to the condition that upon the institution of any claim, action,
suit or proceeding against such person, such person shall in writing give the
Company an opportunity, at its own expense, to handle and defend the same
before such person undertakes to handle and defend it on such person's behalf.
The right of indemnification shall not be exclusive of any other right to which
such person may be
<PAGE>

                                       10

entitled as a matter of law or otherwise, or any power that the Company may
have to indemnify or hold such person harmless.

     (b)  Exculpation. Each member of the Compensation and Option Committee and
each member of the Annual Incentive Compensation Committee shall be fully
justified in relying or acting in good faith upon any information furnished in
connection with the administration of the Plan or any appropriate person or
persons other than such person. In no event shall any person who is or shall
have been a member of the Compensation and Option Committee or a member of the
Annual Incentive Compensation Committee be held liable for any determination
made or other action taken or any omission to act in reliance upon any such
information, or for any action (including the furnishing of information) taken
or any failure to act, if in good faith.

     25.  Finality of Determinations. Each determination, interpretation or
other action made or taken pursuant to the provisions of the Plan by the
Compensation and Option Committee or the Annual Incentive Compensation
Committee shall be final and shall be binding and conclusive for all purposes
and upon all persons, including, but without limitation thereto, the Company,
its stockholders, the Compensation and Option Committee and each of the members
thereof, the Annual Incentive Compensation Committee and each of the members
thereof, and the directors, officers, and employees of the Company, the Plan
participants, and their respective successors in interest.

     26.  Governing Law. The Plan shall be governed by and construed in
accordance with the laws of the State of Michigan.

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