Document:

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                                  EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

      This EMPLOYMENT AGREEMENT made this 1st day of July, 2004, by and between
AGREE REALTY CORPORATION, a Maryland corporation (the "Company"), and KENNETH R.
HOWE (the "Executive").

                              W I T N E S S E T H :

      WHEREAS, the Executive is expected to make certain contributions to the
financial strength of the Company;

      WHEREAS, the Company desires to assure itself of the continuity of
management and desires to establish certain compensation rights of certain of
its key senior executive officers, including the Executive; and

      WHEREAS, the Company desires to employ the Executive and the Executive
desires to accept such employment on the terms and conditions hereinafter set
forth.

      NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, the parties hereto hereby agree as follows:

      1. EMPLOYMENT; TERM. The Company hereby employs the Executive as Vice
President, Finance and Secretary of the Company and the Executive agrees to
serve the Company in such capacity for the period commencing on July 1, 2004
(the "Effective Date") and ending on June 30, 2007 (the "Initial Term"). In
addition the Company may, upon giving the Executive 120 days advance written
notice either prior to the termination of the Initial Term or

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any extension thereof, extend this agreement for two (2) additional one year
terms, as extended, the "Term."

      2. TERMINATION. Subject to the terms and conditions set forth herein, the
Executive's employment may be terminated by either party hereto upon thirty (30)
days' written notice to the other party hereto.

      3. DUTIES. The Executive shall be responsible for the supervision, control
and conduct of all the business and affairs of the Company and shall have such
additional duties and any additional responsibilities as are normally assigned
to a Chief Financial Officer, Vice President and Secretary which may from time
to time be reasonably designated by the Board of Directors of the Company (the
"Board"), provided that in no event shall the scope of his duties and the extent
of his responsibilities be substantially different from the duties and
responsibilities usually associated with those positions in a publicly-held
corporation similar in size and function to the Company. The Executive agrees
that he will conduct all investigations, make all inquiries, provide all
services and execute all reports, certifications and/or attestation required of
him in his capacity as the Chief Financial Officer of the Company and the
"Principal Financial Officer" of the Company (as defined under the rules and
regulations of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) by the Sarbanes-Oxley Act of 2002, the related rules and regulations
promulgated by the Securities and Exchange Commission and the rules and
regulations of the New York Stock Exchange. At all times, the Executive shall be
subject to the direction of the Board. During the period the Executive is
employed by the Company (the "Employment Period"), the Executive shall devote
his full business time and best efforts to the business and affairs of the
Company and its subsidiaries, except for any business activities rendered by the
Executive in connection with the partnerships listed on Schedule A. The

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Executive will not be prevented from (i) engaging in any civic or charitable
activity for which the Executive receives no compensation or other pecuniary
advantage; (ii) investing his personal assets in businesses which do not compete
with the Company, provided that such investment will not require any services on
the part of the Executive in the operation of the affairs of the businesses in
which investments are made which would unreasonably interfere with his
obligations hereunder; (iii) purchasing securities in any corporation whose
securities are publicly traded, provided that such purchases will not result in
the Executive owning beneficially at any time five percent (5%) or more of the
equity securities of any corporation engaged in a business competitive with that
of the Company; (iv) serving as a director of any corporation that does not
engage in any business which is competitive with the then current business of
the Company as any of its subsidiaries (as defined in Section 7 hereof); or (v)
participating in any other activity approved in advance in writing by the Board.

      4. COMPENSATION. The Company shall pay the Executive a salary at the
initial rate of one hundred thirty one thousand dollars ($131,000.00) per annum,
subject to review by the Board's Compensation Committee. Such compensation shall
be shall be payable in accordance with the usual payroll practices of the
Company, as compensation to the Executive for the services rendered by the
Executive hereunder, including, but not limited to, all services rendered by the
Executive as an officer or director of the Company and its subsidiaries. The
Compensation Committee shall review the Executive's salary immediately prior to
the end of each fiscal year during the Employment Period to determine whether
the Executive's salary shall be adjusted based on such criteria as the
Compensation Committee shall from time to time establish. (For purposes of this
Employment Agreement, the term "salary" shall mean the amount established and
adjusted from time to time pursuant to this Section 4.)

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      5.    BENEFITS.

            (a) The Company agrees to reimburse the Executive for all reasonable
and necessary travel, business entertainment and other business expenses
incurred by the Executive in connection with the performance of his duties under
this Employment Agreement. Such reimbursements shall be made by the Company on a
timely basis upon submission by the Executive of documentation in accordance
with the Company's standard procedures. All such reimbursements shall be subject
to limitations, which may from time to time be prescribed by the Board.

            (b) The Executive shall be entitled to participate in any and all
life insurance, medical insurance group health, disability insurance, and other
benefit plans which are made generally available during the Employment Period by
the Company to executives of the Company, including, but not limited to, the
Company's Stock Incentive Plan, Profit Sharing Plan and performance Bonus Plan
(to the extent that the Executive qualifies under the eligibility provisions of
such plan or plans). Additionally, the Executive shall be entitled to receive
annual paid vacation and paid holidays made available pursuant to Company policy
to all of the senior executives of the Company.

            (c) In the event of the death or disability (as defined below) of
the Executive, the Executive's employment hereunder shall terminate, and in
addition to any amounts payable at such time and in accordance with the terms of
Section 4 hereof (appropriately pro-rated), the Company shall, for the longer of
(i) the remainder of the calendar year in which the Executive dies or becomes
disabled or (ii) six (6) months, pay to the Executive or the Executive's
personal representative, as the case may be, the Executive's salary at the date
of such death or disability,

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and the pro-rata portion of the Executive's average bonus over the previous
three calendar years. In addition, all unvested shares of the Company's common
stock issued to the Executive under the Company's Stock Incentive Plan shall
become fully vested. For the purposes of this Employment Agreement, the term
"disability" shall mean the absence of the Executive, due to physical or mental
illness, on a full time basis for one hundred twenty (120) consecutive business
days or for shorter periods which aggregate more than four months during any
consecutive twelve (12) month period.

            (d) In the event the employment of the Executive is terminated by
the Company for any reason other than for cause (as defined below), the
Executive shall be entitled to all amounts payable during the Initial Term
(including, but not limited to, salary at the then applicable rate) within ten
(10) days of such termination and the Executive shall have the right to continue
to participate in all benefit plans made generally available by the Company to
its executives during the Initial Term. In addition, all unvested shares of the
Company's common stock issued to the Executive under the Company's Stock
Incentive Plan shall become fully vested. For purposes of this Section 5(d) the
term "cause" shall mean: (i) the Executive's willful failure or refusal to
perform specific reasonable written directives of the Board, which directives
are consistent with the scope and nature of the Executive's duties and
responsibilities under this Employment Agreement, and which are not remedied by
the Executive within sixty (60) days after being notified, in writing, of his
failure by the Board; (ii) the Executive's conviction of a felony; (iii) any act
of dishonesty involving the Company which results in an unjust gain or
enrichment to the Executive at the expense of the Company; (iv) any act
involving moral turpitude of the Executive which adversely affects the business
of the Company; or (v) a material breach by the Executive of his obligations
under Section 7 hereof. For purposes

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of this Agreement, no act or failure to act on the part of the Executive shall
be deemed "willful" if it was due primarily to an error in judgment or
negligence, but shall be deemed "willful" only if done or omitted to be done by
the Executive not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company.

      The Executive shall not be deemed to have been terminated for "cause"
hereunder unless and until there shall have been delivered to the Executive a
copy of a resolution duly adopted by the affirmative vote of not less than a
majority of the Board then in office at a meeting of the Board called and held
for such purpose, after reasonable notice to the Executive and an opportunity
for the Executive, together with his counsel (if the Executive chooses to have
counsel present at such meeting), to be heard before the Board, finding that, in
the good faith opinion of the Board, the Executive had committed an act
constituting "cause" as herein defined and specifying the particulars thereof in
detail.

            (e) In the event this Employment Agreement is terminated by the
Company for "cause," the Executive shall forfeit his right to any and all
benefits (other than any previously vested benefits, including, without
limitation, the Executive's salary through the date of termination) which the
Executive would otherwise have been entitled to receive pursuant to the terms of
this Employment Agreement.

      6.    CHANGE IN CONTROL OF THE COMPANY.

      If a Change in Control (as defined below) of the Company occurs prior to
the scheduled expiration of the Term of this Employment Agreement and within
three years after the Change in Control of the Company, the Executive is
terminated by the Company for reasons other than death, disability, or cause,
the Company, or any successor thereto, will pay to the Executive

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within 30 days of Executive's termination of employment, an amount equal to the
greater of (i) three (3) times Executive's compensation, or (ii) the Executive's
compensation due over the Initial Term of this agreement which, for purposes of
this Section, "Executive compensation" shall mean an amount equal to the highest
annualized rate of Executive's salary prior to the date of termination. In
addition, all unvested shares of the Company's common stock issued to the
Executive under the Company's Stock Incentive Plan shall become fully vested.

      For purposes of this Agreement, a "Change in Control" shall have occurred
if at any time during the Term any of the following events occurs:

            (a) The Company is merged, consolidated or reorganized into or with
another corporation or other legal person and as a result of such merger,
consolidation or reorganization less than a majority of the combined voting
power of the then-outstanding securities of such corporation or person
immediately after such transaction are held in the aggregate by the holders of
Voting Stock (as hereinafter defined) of the Company immediately prior to such
transaction;

            (b) The Company sells all or substantially all of its assets to any
other corporation or other legal person, less than a majority of the combined
voting power of the then-outstanding voting securities of which are held in the
aggregate by the holders of Voting Stock of the Company immediately prior to
such sale;

            (c) There is a report filed on Schedule 13D or Schedule 14D-1 (or
any successor schedule, form or report), each as promulgated pursuant to the
Exchange Act, disclosing that any person (as the term "person" is used in
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the
beneficial owner (as the term "beneficial owner" is defined under Rule 13d-3 or
any successor rule or regulation promulgated under the Exchange Act) of

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securities representing 25% or more of the combined voting power of the
then-outstanding securities of the Company entitled to vote generally in the
election of directors of the Company ("Voting Stock");

            (d) The Company files a report or proxy statement with the
Securities and Exchange Commission pursuant to the Exchange Act disclosing in
response to Form 8-K or Schedule 14A (or any successor schedule, form or report
or item therein) that a change in control of the Company has or may have
occurred or will or may occur in the future pursuant to any then-existing
contract or transaction; or

            (e) If during any period of two consecutive years, individuals who
at the beginning of any such period constitute the directors of the Company
cease for any reason to constitute at least a majority thereof unless the
election, or the nomination for election by the Company's stockholders, of each
director of the Company first elected during such period was approved by a vote
of at least two-thirds of the directors of the Company then still in office who
were directors of the Company at the beginning of any such period.

      Notwithstanding the foregoing provision of Section 6(c) or 6(d) hereof, a
"Change in Control" shall not be deemed to have occurred for purposes of this
Agreement solely because the Company, an entity in which the Company directly or
indirectly beneficially owns 50% or more of the voting securities of such
entity, any Company-sponsored employee stock ownership plan or any other
employee benefit plan of the Company either files or becomes obligated to file a
report or a proxy statement under or in response to Schedule 13D, Schedule
14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or
item therein) under the Exchange Act, disclosing beneficial ownership by it of
shares of voting securities of the Company, whether

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in excess of 25% or otherwise, or because the Company, reports that a change in
control of the Company has or may have occurred or will or may occur in the
future by reason of such beneficial ownership.

      7.    NON-COMPETITION. The Executive agrees that if the Executive is
terminated for "cause" or voluntarily terminates his employment hereunder, that
for a one year period the Executive shall not engage in any business which is
competitive with the then current business of the Company or any of its
subsidiaries. For the purposes of this Section 7 a business shall be deemed
competitive if it consists of or includes any type or line of business engaged
in by the Company or any of its subsidiaries at the time of such terminations
and which is conducted in whole or in part, within those states where the
Company then conducts business. The executive shall be deemed, directly or
indirectly, to engage in a business if he participates in such business as a
director, officer, stockholder, employee, salesman, partner or individual
proprietor, or if he participates in such business as an investor who has made
advances on loan, contributions to capital or expenditures for the purchase of
stock, permits his name to be used by, acts as a paid consultant or paid advisor
to, or if the Executive exerts a controlling influence over such business,
provided that nothing herein contained shall be deemed to preclude the purchase
of securities of publicly owned companies which securities are listed on a
national securities exchange, but the total holding of any such securities so
listed shall be limited to five percent (5%) of the amount of such securities
outstanding.

      8.    CONFIDENTIALITY. The Executive shall not at any time use or divulge,
furnish or make accessible to anyone (other then in the regular course of the
business of the Company or any of its subsidiaries) any knowledge or information
of trade secrets and proprietary information which has not otherwise become
publicly available (including, but not limited to,

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any information concerning customers or accounts) with respect to the business
affairs of the Company or any of its subsidiaries.

      9.    NOTICES. All notices relating to this Employment Agreement shall be
in writing and shall be deemed to have been given at the time when delivered
personally or sent in the United States by registered or certified mail, return
receipt requested, in a postpaid envelope, addressed to the other party at the
address set forth below, or to such changed address as the other party may have
fixed by notice; provided, however, that any notice of change of address shall
be effective only upon receipt:

         To the Company                              Agree Realty Corporation
                                                     31850 Northwestern Highway
                                                     Farmington Hills, MI 48334

         To the Executive                            2455 Wendrick Court
                                                     West Bloomfield, MI 48322

      10.   ASSIGNABILITY, BINDING EFFECT AND SURVIVAL. This Employment
Agreement shall inure to the benefit of and be binding upon the Company, its
successors and assigns, including without limitation any corporation which may
acquire all or substantially all of the Company's assets and business or with or
into which the Company may be consolidated or merged, and shall inure to the
benefit of and be binding upon the Executive, his heirs, executors,
administrators and legal representatives, provided that the obligations of the
Executive hereunder may not be delegated.

      11.   COMPLETE UNDERSTANDING; AMENDMENT; WAIVER. This Employment Agreement
constitutes the complete understanding between the parties with respect to the
employment of the Executive hereunder, and no statement, representation,
warranty or covenant has been made by either party with respect thereto except
as expressly set forth herein. This Employment

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Agreement shall not be altered, modified, amended or terminated except by
written instrument signed by each of the parties hereto. Waiver by either party
hereto of any breach hereunder by the other party shall not operate as a waiver
of any other breach, whether similar to or different from the breach waived. No
delay on the part of the Company or the Executive in the exercise of any of
their respective rights or remedies shall operate as a waiver thereof, and no
single or partial exercise by the Company or the Executive of any such right or
remedy shall preclude other or further exercise thereof.

      12.   SEVERABILITY. If any provision of this Employment Agreement or the
application of any such provision to any party or circumstances shall be
determined by any court of competent jurisdiction to be invalid and
unenforceable to any extent, the remainder of this Employment Agreement or the
application of such provision to such person or circumstances other than those
to which it is so determined to be invalid and unenforceable, shall not be
affected thereby, and each provision hereof shall be enforced to the fullest
extent permitted by law.

      13.   GOVERNING LAW. This Employment Agreement shall be governed and
construed in accordance with the internal laws of the State of Michigan without
regard to conflict of laws provisions.

      14.   INDEMNIFICATION. The Company shall indemnify the Executive against
judgments, fines, amounts paid in settlement and reasonable expenses, including
attorneys' fees actually and necessarily incurred, in any action or proceeding
to which the Executive is made a party by reason of the fact that he is or was
an officer or director of the Company, to the fullest

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extent permitted by law, the By-laws of the Company and the Articles of
Incorporation of the Company.

      15.   COUNTERPARTS. This Employment Agreement may be executed in
counterparts, all of which together shall constitute one agreement binding on
all parties hereto.

      16.   TITLES AND CAPTIONS. All paragraph, article or section titles or
captions in this Employment Agreement are for convenience only and in no way
define, limit, extend or describe the scope or intent of any provisions hereof.

      IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Employment Agreement as of the date first above written.

                                                     AGREE REALTY CORPORATION
                                                     COMPENSATION COMMITTEE

                                                     By: /s/ Gene Silverman
                                                         ----------------------
                                                     Name:  Gene Silverman
                                                     Title: Chairman

                                                     By: /s/ Kenneth R. Howe
                                                         -----------------------
                                                         Kenneth R. Howe
                                                         Executive

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                                   SCHEDULE A

Anderson Plaza

Brentwood Realty Associates

Floyd Realty Associates

Gas City Plaza

Grant Line Plaza

Greenwood Realty Associates

Harden Realty Associates

Hartman Realty Associates

Main Realty Associates

Marshall Plaza

Parkway Plaza Limited Partnership

West Frankfort Plaza

T.M.J. Incorporated

Radcliff, Inc.

                                 Schedule A - 1<PAGE>
EXHIBIT (10.1) Comerica Incorporated Incentive Plan for Non-Employee Directors

-   Approved by the Corporate Governance and Nominating Committee on March 23,
    2004
-   Approved by the Board of Directors on March 23, 2004
-   Approved by the Stockholders on May 18, 2004

                              COMERICA INCORPORATED

                                 INCENTIVE PLAN

                                       FOR

                             NON-EMPLOYEE DIRECTORS

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                              COMERICA INCORPORATED
                    INCENTIVE PLAN FOR NON-EMPLOYEE DIRECTORS

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

<S>                                                                      <C>
SECTION I -- PURPOSE......................................................1

SECTION II -- DEFINITIONS.................................................1

SECTION III -- ADMINISTRATION.............................................3

SECTION IV -- COMMON STOCK SUBJECT TO PLAN................................4

SECTION V -- AWARDS.......................................................5

SECTION VI -- CHANGE OF CONTROL PROVISIONS................................9

SECTION VII -- TERMINATION AND AMENDMENT..................................9

SECTION VIII -- UNFUNDED STATUS OF PLAN..................................10

SECTION IX -- GENERAL PROVISIONS.........................................10

SECTION X -- EFFECTIVE DATE OF PLAN......................................12

</TABLE>

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                              COMERICA INCORPORATED
                                 INCENTIVE PLAN
                           FOR NON-EMPLOYEE DIRECTORS

SECTION I -- PURPOSE

          The purpose of this Comerica Incorporated Incentive Plan for
Non-Employee Directors is to promote the continued prosperity of Comerica
Incorporated by aligning the financial interests of the recipients of awards
hereunder with those of the stockholders of Comerica Incorporated, to provide an
additional incentive for such individuals to remain as directors, and to provide
a means through which Comerica Incorporated may attract well-qualified
individuals to serve as directors.

SECTION II -- DEFINITIONS

          For purposes of this Comerica Incorporated Incentive Plan for
Non-Employee Directors, the following terms are defined as set forth below:

     A.   "Affiliate" means (i) any entity that is controlled by the
Corporation, whether directly or indirectly, or (ii) any entity in which the
Corporation has a significant equity interest, as determined by the Committee.

     B.   "Award" means an Option Award, a Stock Appreciation Right Award, a
Restricted Stock Award, a Restricted Stock Unit Award or an Other Equity-Based
Award.

     C.   "Award Agreement" means a written document setting forth the terms and
conditions of an Award.

     D.   "Beneficiary Designation Form" means the form used to designate the
Participant's beneficiary(ies) to whom any amounts payable in the event of the
Participant's death are to be paid and by whom any rights of the Participant,
after the Participant's death, may be exercised, as such form may be modified by
the Committee from time to time.

     E.   "Board" means the Board of Directors of the Corporation.

     F.   "Change of Control" has the meaning set forth in Section VI.

     G.   "Committee" means the Corporate Governance and Nominating Committee or
such other committee of the Board as the Board may from time to time designate.

     H.   "Common Stock" means common stock, par value $5.00 per share, of the
Corporation.

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     I.   "Corporation" means Comerica Incorporated, a Delaware corporation.

     J.   "Eligible Director" means any individual serving as a member of the
Board who is not an employee of the Corporation or any of its Subsidiaries or
Affiliates.

     K.   "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, and any successor thereto.

     L.   "Fair Market Value" means, as of any given date, the closing price on
the New York Stock Exchange, Inc. on that date, or if the Common Stock was not
traded on the New York Stock Exchange, Inc. on such date, then on the last
preceding date on which the Common Stock was traded, all as reported by such
source as the Committee may select. If Fair Market Value for any date in
question cannot be determined as provided above, Fair Market Value shall be
determined by the Committee by whatever method or means the members, in the good
faith exercise of their discretion, at that time shall deem appropriate.

     M.   "Option" means a right to purchase a specified number of shares of
Common Stock during a specified period pursuant to such terms as are determined
by the Committee and as may be set forth in the applicable Award Agreement.

     N.   "Option Award" means an Award granted under Section V(A).

     O.   "Other Equity-Based Award" means an Award granted under Section V(E).

     P.   "Participant" means any individual who has received an Award.

     Q.   "Plan" means the Comerica Incorporated Incentive Plan for Non-Employee
Directors, as set forth herein and as hereinafter amended and/or restated from
time to time.

     R.   "Restricted Stock" means shares of Common Stock that are subject to
certain conditions and restrictions, as determined by the Committee and as may
be set forth in the applicable Award Agreement.

     S.   "Restricted Stock Award" means an Award granted under Section V(C).

     T.   "Restricted Stock Unit" means a unit equivalent to a share of Common
Stock that is subject to certain conditions and restrictions, as determined by
the Committee and as may be set forth in the applicable Award Agreement.

     U.   "Restricted Stock Unit Award" means an Award granted under Section
V(D).

     V.   "Section" means, unless otherwise specified, a Section of the Plan.

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     W.   "Stock Appreciation Right" means a right to receive payment in cash
and/or shares of Common Stock equal to the excess of the Fair Market Value of a
specified number of shares of Common Stock on the date the Stock Appreciation
Right is exercised (or, if the Committee shall so determine, at any time during
a specified period before or after the date of exercise) over the grant price of
the Stock Appreciation Right as specified by the Committee, which price shall
not be less than 100% of the Fair Market Value of the same number of shares of
Common Stock on the date of grant of the Stock Appreciation Right.

     X.   "Stock Appreciation Right Award" means an Award granted under Section
V(B).

     Y.   "Subsidiary" means any corporation, partnership or other entity, a
majority of whose stock or interest is owned, directly or indirectly, by the
Corporation.

SECTION III -- ADMINISTRATION

     A.   The Plan shall be administered by the Committee; provided, that the
Board shall have the authority to exercise any and all duties and
responsibilities assigned to the Committee under the Plan. Among other things,
the Committee shall have the authority, subject to the terms of the Plan, to
determine the type or types of Award(s), if any, to be granted to an Eligible
Director, to grant Awards to Eligible Directors, to determine the number of
shares of Common Stock or units to be covered by each such Award and otherwise
to determine the terms and conditions thereof, and to amend such terms and
conditions at any time and from time to time. Awards may be granted singly or in
any combination. Awards granted under the Plan shall be evidenced by Award
Agreements that set forth the terms and conditions for the respective Award,
which may include, among other things, the provisions applicable in the event
the Participant's membership on the Board terminates. The Committee may, but
need not, require the execution by a Participant of any such Award Agreement.
Acceptance of the Award by the respective Participant shall constitute
acceptance of the terms and conditions of the Award, including, without
limitation, those set forth in the Award Agreement and the Plan.

     B.   The Committee shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan as it shall
from time to time deem advisable, to interpret the terms and provisions of the
Plan and any Award issued under the Plan (and any Award Agreement relating
thereto) and to otherwise supervise the administration of the Plan.

     C.   Determinations of the Committee shall be made by a majority vote of
its members at a meeting at which a quorum is present or pursuant to a unanimous
written consent of its members.

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     D.   The Committee may delegate all or any portion of its responsibilities
and powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any person or persons selected by it;
provided, that no such delegation may be made that would cause Awards or other
transactions under the Plan to cease to be exempt from Section 16(b) of the
Exchange Act or that is prohibited by applicable law or the applicable rules of
the New York Stock Exchange, Inc. (or the applicable rules of such other
securities exchange as may at the time of the delegation be the principal market
for the Common Stock). Any such delegation may be revoked by the Committee at
any time.

     E.   Any determination made by the Committee or pursuant to delegated
authority under the provisions of the Plan with respect to any Award shall be
made in the sole and absolute discretion of the Committee or its delegate at the
time of the grant of the Award or, unless in contravention of an express term of
the Plan, at any time thereafter. All decisions made by the Committee or any
appropriate delegate pursuant to the provisions of the Plan shall be final and
binding on all persons, including the Corporation, Participants, beneficiaries
and other interested parties.

SECTION IV -- COMMON STOCK SUBJECT TO THE PLAN

     A.   The maximum number of shares of Common Stock that may be delivered
under the Plan shall be 500,000. Shares issued pursuant to the Plan may be
authorized and unissued shares, treasury shares, shares purchased in the open
market or in private transactions, or any combination of the foregoing.

     B.   If an Award is forfeited or cancelled, an Option or Stock Appreciation
Right terminates, expires or lapses without being exercised or an Award is
settled in cash rather than shares of Common Stock, the shares of Common Stock
that had been subject thereto shall again be available for distribution in
connection with Awards under the Plan.

     C.   In the event the number of outstanding shares of Common Stock changes
as a result of any stock split, stock dividend, recapitalization, merger,
consolidation, reorganization, combination, or exchange of shares, split-up,
split-off, spin-off, liquidation or other similar change in capitalization, or
any distribution made to holders of Common Stock other than cash dividends, the
number or kind of shares that may be issued under the Plan, and the number or
kind of shares subject to, or the exercise price per share under, any
outstanding Award, shall be automatically adjusted, and the Committee shall be
authorized to make such other equitable adjustments of any Award or shares of
Common Stock issuable pursuant thereto so that the value of the interest of the
individual shall not be decreased by reason of the occurrence of such event. Any
such adjustment shall be deemed conclusive and binding on the Corporation, each
Participant, their beneficiaries and all other interested parties.

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SECTION V -- AWARDS

     A.   OPTIONS. The Committee may grant Option Awards to Eligible Directors
in accordance with the provisions of this subsection, subject to such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall determine to be appropriate. Options granted under the Plan
shall be non-qualified stock options.

          1.   Exercise Price. The exercise price per share of Common Stock of
an Option shall not be less than the Fair Market Value of a share of Common
Stock on the date of grant.

          2.   Option Term. The term of an Option shall not exceed ten years
from the date of grant.

          3.   Methods of Exercise. Subject to the provisions of the applicable
Award Agreement, an Option may be exercised, in whole or in part, by giving
written notice of exercise to the Corporation specifying the number of shares of
Common Stock subject to the Option to be purchased, subject to such procedures
as established by the Committee from time to time. Prior to settlement of any
such exercise, the exercise price shall be satisfied in full in accordance with
Section V(G).

          4.   Rights upon Exercise. A Participant shall have all of the rights
of a stockholder with respect to the shares purchased upon exercise of an Option
when the Participant has given written notice of exercise, has paid in full for
such shares and, if requested, has given the representation described in Section
IX(A).

     B.   STOCK APPRECIATION RIGHTS. The Committee may grant Stock Appreciation
Right Awards to Eligible Directors, subject to such terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall determine
to be appropriate, including, without limitation, the grant price, term, manner
of exercise, dates of exercise, methods of settlement and form of such
settlement (i.e., cash or shares of Common Stock).

     C.   RESTRICTED STOCK. The Committee may grant Restricted Stock Awards to
Eligible Directors in accordance with the provisions of this subsection, subject
to such additional terms and conditions, not inconsistent with the provisions of
the Plan, as the Committee shall determine to be appropriate.

          1.   Awards and Certificates. Shares of Restricted Stock shall be
evidenced in such manner as the Committee may deem appropriate, including
book-entry registration or the issuance of one or more stock certificates. Any
certificate issued in respect of shares of Restricted Stock shall be registered
in the name of such Participant and shall bear an appropriate legend referring
to the terms, conditions, and restrictions applicable to such Award,
substantially in the following form:

                                       5
<PAGE>

          THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK
          REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING
          FORFEITURE) OF THE COMERICA INCORPORATED INCENTIVE PLAN FOR
          NON-EMPLOYEE DIRECTORS AND AN AWARD AGREEMENT. COPIES OF SUCH PLAN AND
          AWARD AGREEMENT ARE ON FILE AT THE OFFICES OF COMERICA INCORPORATED AT
          500 WOODWARD AVENUE, MC 3391, DETROIT, MICHIGAN 48226.

The Committee may require that the certificates evidencing such shares be held
in custody by the Corporation until the restrictions thereon shall have lapsed
and that, as a condition of any Restricted Stock Award, the Participant shall
have delivered a stock power, endorsed in blank, relating to the Common Stock
covered by such Award.

          2.   Rights of Holder of Restricted Stock. Except as provided in this
Section V(C) and the applicable Award Agreement, a Participant to whom
Restricted Stock is granted shall have all of the rights of a stockholder of the
Corporation with respect to the Common Stock subject to the Restricted Stock
Award, including, if applicable, the right to vote the shares and the right to
receive any dividends and other distributions.

     D.   RESTRICTED STOCK UNITS. The Committee may grant Restricted Stock Unit
Awards to Eligible Directors, subject to such terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall determine
to be appropriate, including, without limitation, the time or times at which
Restricted Stock Units will be granted, the number of shares to be represented
by each such grant, the conditions for vesting thereof, the time or times within
which Restricted Stock Units may be subject to forfeiture, the time or times at
which Restricted Stock Units will be settled and the form of such settlement
(i.e., cash or shares of Common Stock).

          1.   Rights of Holder of Restricted Stock Units. A Participant to whom
Restricted Stock Units are granted shall not have any rights of a stockholder of
the Corporation with respect to the Common Stock represented by the Restricted
Stock Unit Award. If so determined by the Committee, and subject to Section
13(e) of the Plan, Restricted Stock Units may include a dividend equivalent
right, pursuant to which the Participant will either receive cash amounts
(either paid currently or on a deferred and/or contingent basis) equivalent to
the dividends and other distributions payable with respect to the number of
shares of Common Stock represented by the Restricted Stock Units, or additional
Restricted Stock Units representing such dividends and other distributions.

     E.   OTHER EQUITY-BASED AWARDS. The Committee may grant Other Equity-Based
Awards to Eligible Directors in accordance with the provisions of this Section
V(E) and subject to such additional terms and conditions, not inconsistent with
the provisions of the Plan, as the Committee shall determine. Other Equity-Based

                                       6
<PAGE>

Awards may be denominated or payable in, valued in whole or in part by reference
to, or otherwise based on or related to, Common Stock (including, without
limitation, securities convertible into Common Stock), as are deemed by the
Committee to be consistent with the purpose of the Plan; provided, however, that
such grants must comply with applicable law. Other Equity-Based Awards may be
granted either alone or in conjunction with other Awards granted under the Plan.

     F.   DEFERRED SHARES OF COMMON STOCK. The Committee may from time to time
establish procedures pursuant to which a Participant may elect to defer, until a
time or times later than the exercise of an Option or a Stock Appreciation Right
or the settlement or distribution of shares in respect of other Awards, receipt
of all or a portion of the shares of Common Stock subject to such Award and/or
to receive cash at such later time or times in lieu of such deferred shares, all
on such terms and conditions as the Committee shall determine. If any such
deferrals are permitted, then notwithstanding anything to the contrary contained
herein or in an Award Agreement, a Participant who elects such deferral shall
not have any rights as a stockholder with respect to such deferred shares unless
and until shares are actually delivered to the Participant with respect thereto,
except to the extent otherwise determined by the Committee.

     G.   FORMS OF PAYMENT BY PARTICIPANTS. Subject to the terms of the Plan and
of any applicable Award Agreement, payments to be made by a Participant upon the
exercise or vesting of an Award may be made in such form or forms as the
Committee shall determine.

     H.   LIMITS ON TRANSFER OF AWARDS. Unless otherwise determined by the
Committee, no Award and no right under any such Award shall be transferable by a
Participant otherwise than by will or by the laws of intestacy; provided,
however, that, a Participant may, in accordance with Section IX(E) and in the
manner established by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any property payable or distributable
with respect to any Award upon the death of the Participant. Each Award or right
under any Award shall be exercisable during the Participant's lifetime only by
the Participant or, if permissible under applicable law, by the Participant's
guardian or legal representative. Unless otherwise determined by the Committee,
no Award or right under any such Award may be pledged, alienated, attached or
otherwise encumbered, and any purported pledge, alienation, attachment or
encumbrance thereof shall be void and unenforceable against the Corporation or
any Subsidiary or Affiliate.

     I.   TERM OF AWARDS. Subject to any specific provisions of the Plan, the
term of each Award shall be for such period as may be determined by the
Committee.

     J.   SECURITIES LAW RESTRICTIONS. All certificates for shares of Common
Stock or other securities delivered under the Plan pursuant to any Award or the
exercise thereof shall be subject to such restrictions as the Committee may deem
advisable under the Plan, or the rules, regulations and other requirements of
the

                                       7
<PAGE>

Securities and Exchange Commission, the New York Stock Exchange, any other
exchange on which shares of Common Stock may be eligible to be traded or any
applicable federal or state securities laws, and the Committee may cause a
legend or legends to be placed on any such certificates to make appropriate
reference to such restrictions.

     K.   TERMINATION OF BOARD SERVICE AS A RESULT OF DEATH, DISABILITY OR
RETIREMENT. Unless otherwise determined by the Committee, if a Participant's
membership on the Board is terminated by the Participant's death, disability or
retirement, then on the date the Participant's membership is so terminated:

          1.   Any Options and Stock Appreciation Rights granted to such
               Participant that are outstanding as of the date the Participant's
               membership is so terminated, and which are not then exercisable
               and vested, shall become fully vested and shall be exercisable
               for the remainder of the original Option or Stock Appreciation
               Right term.

          2.   The restrictions and deferral limitations applicable to any
               Restricted Stock granted to such Participant shall lapse, and
               such Restricted Stock shall become free of all restrictions and
               become fully vested and transferable to the full extent of the
               original grant.

          3.   All Restricted Stock Units granted to such Participant shall be
               considered to be fully vested, any deferral or other restriction
               shall lapse and such Restricted Stock Units shall be settled in
               cash as promptly as is practicable.

          4.   All Other Equity-Based Awards granted to such Participant shall
               vest and be exercisable, or shall vest and be settled in cash as
               promptly as is practicable, as applicable.

The Committee shall have the sole and absolute discretion to determine whether
the termination of a Participant's Board membership is by reason of disability
or retirement; provided, that any termination of a Participant's Board
membership, other than a removal for cause, as determined by the Committee in
its sole and absolute discretion, that occurs following a Change of Control
shall be deemed to be by reason of retirement.

     L.   OTHER TERMINATION OF BOARD SERVICE. Unless otherwise determined by the
Committee, if a Participant's membership on the Board is terminated for any
reason other than death, disability or retirement, as provided in Section V(K),
any outstanding Awards held by the Participant that are unvested on such date of
termination shall be immediately forfeited and cancelled, and any outstanding
Option or Stock Appreciation Right held by the Participant that is vested but
unexercised as of the date of termination shall be exercisable for a period of
ninety days after such

                                       8
<PAGE>

termination or until the expiration date of the Option or Stock Appreciation
Right, as the case may be, whichever date occurs earlier.

VI -- CHANGE OF CONTROL PROVISIONS

     A.   IMPACT OF EVENT. Notwithstanding any other provision of the Plan to
the contrary, in the event of a Change of Control:

          1.   Any Options and Stock Appreciation Rights outstanding as of the
               date such Change of Control is determined to have occurred, and
               which are not then exercisable and vested, shall become fully
               vested and shall be exercisable for the remainder of the original
               Option or Stock Appreciation Right term.

          2.   The restrictions and deferral limitations applicable to any
               Restricted Stock shall lapse, and such Restricted Stock shall
               become free of all restrictions and become fully vested and
               transferable to the full extent of the original grant.

          3.   All Restricted Stock Units shall be considered to be fully
               vested, and any deferral or other restriction shall lapse and
               such Restricted Stock Units shall be settled in cash as promptly
               as is practicable.

          4.   All Other Equity-Based Awards shall vest and be exercisable, or
               shall vest and be settled in cash as promptly as is practicable,
               as applicable.

          5.   The Committee may also make additional adjustments and/or
               settlements of outstanding Awards as it deems appropriate and
               consistent with the Plan's purposes.

     B.   DEFINITION OF CHANGE OF CONTROL. For purposes of the Plan, a "Change
of Control" shall have the meaning set forth in the Comerica Incorporated 1997
Long-Term Incentive Plan, as amended and/or restated from time to time.

VII -- TERMINATION AND AMENDMENT

     A.   The Plan will terminate on the tenth anniversary of the effective date
of the Plan. Under the Plan, Awards outstanding as of such date shall not be
affected or impaired by the termination of the Plan.

     B.   The Committee or the Board may amend, alter, or discontinue the Plan,
but no amendment, alteration or discontinuation shall be made which would
adversely impact the rights of a Participant under any Award theretofore granted
without the Participant's consent, except such an amendment made to comply with
applicable law, stock exchange rules or accounting rules. In addition, no such
amendment shall be made without the approval of the Corporation's stockholders
to the extent such approval

                                       9
<PAGE>

is required by applicable law or the applicable rules of the New York Stock
Exchange, Inc. (or the applicable rules of such other securities exchange as may
at the time be the principal market for the Common Stock).

     C.   The Committee may amend the terms of any Option or other Award
theretofore granted, prospectively or retroactively; provided, however, that no
such amendment shall adversely impact the rights of any Participant without the
Participant's consent except such an amendment made to cause the Plan or Award
to comply with applicable law, stock exchange rules or accounting rules; and
provided, further, that in no event may an Option or other Award be repriced
without the approval of the stockholders of the Corporation except due to an
adjustment pursuant to Section IV(C).

     D.   Subject to the above provisions and unless prohibited by applicable
law or the applicable rules of the New York Stock Exchange, Inc. (or the
applicable rules of such other securities exchange as may at the time be the
principal market for the Common Stock), the Committee or the Board shall have
authority to amend the Plan to take into account changes in law and tax and
accounting rules, as well as other developments, and to grant Awards which
qualify for beneficial treatment under such rules without stockholder approval.

SECTION VIII -- UNFUNDED STATUS OF PLAN

     It is presently intended that the Plan will constitute an "unfunded" plan.
The Committee may authorize the creation of trusts or other arrangements to meet
the obligations created under the Plan to deliver Common Stock or make payments;
provided, however, that unless the Committee otherwise determines, the existence
of such trusts or other arrangements is consistent with the "unfunded" status of
the Plan.

SECTION IX -- GENERAL PROVISIONS

     A.   The Committee may require each person purchasing or receiving shares
pursuant to an Award to represent to and agree with the Corporation in writing
that such person is acquiring the shares without a view to the distribution
thereof. The certificates for such shares may include any legend which the
Committee deems appropriate to reflect any restrictions on transfer.

     B.   Notwithstanding any other provision of the Plan or any Award
Agreements made pursuant thereto, the Corporation shall not be required to
evidence book-entry registration of shares of Common Stock under the Plan or
issue or deliver any certificate or certificates for shares of Common Stock
under the Plan prior to fulfillment of all of the following conditions:

          1.   Listing or approval for listing upon notice of issuance, of such
               shares on the New York Stock Exchange, Inc., or such other

                                       10
<PAGE>

               securities exchange as may at the time be the principal market
               for the Common Stock;

          2.   Any registration or other qualification of such shares of the
               Corporation under any state or federal law or regulation, or the
               maintaining in effect of any such registration or other
               qualification which the Committee shall, in its sole and absolute
               discretion upon the advice of counsel, deem necessary or
               advisable; and

          3.   Obtaining any other consent, approval, or permit from any state
               or federal governmental agency which the Committee shall, in its
               sole and absolute discretion after receiving the advice of
               counsel, determine to be necessary or advisable.

     C.   Nothing contained in the Plan shall prevent the Corporation or any
Subsidiary or Affiliate from adopting other or additional compensation
arrangements for its directors.

     D.   Adoption of the Plan shall not confer upon any Eligible Director any
right to continued service on the Board.

     E.   Upon becoming a Participant of the Plan, each Eligible Director shall
submit to Comerica Incorporated, Human Resources - Compensation, 411 West
Lafayette, MC 3122, Detroit, MI 48226 (or to such other unit or person as
designated by the Committee from time to time) a Beneficiary Designation Form
designating one or more beneficiaries to whom any Awards payable or
distributable in the event of the Participant's death are to be paid or
distributed, or by whom any rights of the Participant, after the Participant's
death, may be exercised. A Beneficiary Designation Form will be effective only
if it is signed by the Participant and submitted before the Participant's death.
Any subsequent Beneficiary Designation Form properly submitted will supersede
any previous Beneficiary Designation Form so submitted. If a Participant
designates a spouse as a beneficiary, such designation shall automatically
terminate and be of no effect following the divorce of the Participant and such
individual, unless ratified in writing post-divorce.

     If the primary beneficiary shall predecease the Participant or the primary
beneficiary and the Participant die in a common disaster under such
circumstances that it is impossible to determine who survived the other, the
Participant's Awards remaining at the time of the Participant's death shall be
paid or distributed to the alternate beneficiary(ies) who survive(s) the
Participant in accordance with this Plan and the applicable Award Agreement. If
there are no alternate beneficiaries living or in existence at the date of the
Participant's death, or if the Participant has not submitted a valid Beneficiary
Designation Form to the Corporation, the remaining Awards shall be distributed
or paid in accordance with the terms of the Plan and the Award Agreement to the
legal representative for the benefit of the Participant's estate.

                                       11
<PAGE>

     F.   The Plan and all Awards made and actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware,
without reference to principles of conflict of laws.

SECTION X -- EFFECTIVE DATE OF PLAN

     This Plan shall be effective as of the date it is approved by at least a
majority of the outstanding shares of Common Stock of the Corporation present
and having voting power at the meeting at which this Plan is put to a vote.

                                       12

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