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Sample Business Contracts

Benefit Equalization Plan - Ford Motor Co.

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                               FORD MOTOR COMPANY
                           BENEFIT EQUALIZATION PLAN

                       (as amended as of January 1, 1989)

SECTION 1.  PURPOSE.

The purpose of this Plan is to preserve certain benefits of employees under the
Company's tax qualified General Retirement Plan and Savings and Stock
Investment Plan for Salaried Employees by providing appropriate Equalization
Benefits under this Plan in place of benefits which cannot be provided under
such tax qualified plans because of limitations imposed by Section 415 and
Section 401(a)(17) of the Internal Revenue Code.

SECTION 2.  DEFINITIONS.

As used in this Plan, the following terms shall have the following meanings,
respectively:

         2.01  "BEP SALARY REDUCTIONS" shall mean that portion of salary at the
basic salary rate which would have been credited to an employee's account
before January 1, 1985 pursuant to a salary reduction agreement under paragraph
V-2 of the SSIP but which by reason of Section 415 of the Code, exceeds salary
reduction contributions that can be made by the Company on an employee's behalf
under the Tax-Efficient Savings Program of the SSIP.

         2.02  "COMPANY" shall mean Ford Motor Company.

         2.03  "COMMITTEE" shall mean the committee authorized to administer
and interpret the Plan as provided in Section 6.

         2.04  The term "CONTRIBUTORY SERVICE" shall have the meaning given
that term in the GRP.  "DISTRIBUTION", "ACCOUNT" and "CURRENT MARKET VALUE" as
used in Section 3.02 of this Plan shall have the meanings given those terms as
used in the SSIP.

         2.05  "ERISA " shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time.

         2.06  "GENERAL RETIREMENT PLAN" OR "GRP" shall mean the Ford Motor
Company General Retirement Plan for Salaried and Certain Other Employees, as
amended from time to time.

         2.07  "INTERNAL REVENUE CODE" OR "CODE" shall mean the Internal
Revenue Code of 1986, as amended from time to time.

         2.08  "LIMITATIONS" shall mean the limitations on benefits and/or
contributions imposed on qualified plans by Section 415 and Section 401(a)(17)
of the Code.

         2.09  "PBGC" shall mean the Pension Benefit Guaranty Corporation.
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         2.10  "SAVINGS AND STOCK INVESTMENT PLAN" OR "SSIP" shall mean the
Ford Motor Company Savings and Stock Investment Plan for Salaried Employees, as
amended from time to time.

SECTION 3.  EQUALIZATION OF BENEFITS.

         3.01   GRP EQUALIZATION BENEFITS.

         (a)     A Periodic GRP Equalization Benefit shall be provided for and
                 associated with each payment of a GRP benefit that is subject
                 to the Limitations.

         (b)     The Periodic GRP Equalization Benefit shall be equal in amount
                 to the difference between the GRP benefit and the
                 corresponding benefit that would be payable under the GRP
                 without regard to the Limitations.  In determining the amount
                 of the Periodic GRP Equalization Benefit, the member's salary
                 shall be the member's  salary (as that term is defined in the
                 GRP) plus BEP Salary Reductions for periods before January 1,
                 1985 which are credited under this Plan pursuant to Section
                 3.02(a)(ii)(C) below, but the member shall not make
                 contributions hereunder based on such BEP Salary Reductions.

                 The Periodic GRP Equalization Benefit shall be paid by the
                 Company to the person receiving payment of the corresponding
                 GRP benefit and, as nearly as practicable, at the same time.

         (c)     As an alternative to the GRP Periodic Equalization Benefit,
                 the Company and an employee eligible for the Periodic GRP
                 Equalization Benefit under this Section 3.01 may agree on
                 payment of the actuarial equivalent in a lump sum of such
                 Periodic GRP Equalization Benefit, subject to the following
                 conditions and such other conditions as may be determined by
                 the Vice President-Finance and Treasurer, the Vice
                 President-General Counsel and the Vice President-Employee
                 Relations:

                 (i)      The actuarial equivalent shall be determined on the
                          basis of the interest rates and mortality tables,
                          which would be used by the PBGC for determining the
                          present value of liability for pensioners' benefits
                          in the case of a terminated retirement plan under
                          Title IV of ERISA and which are in effect in the
                          month prior to the month when the employee's GRP
                          benefit begins.

                 (ii)     The agreement must be entered into (A) prior to the
                          year in which the employee's retirement occurs and
                          (B) not later than six months before the actual
                          retirement date; provided, however, that the
                          requirement contained in Subsection (B) immediately
                          above shall not apply to such an agreement entered
                          into in 1984 by the Company and an eligible employee
                          who retires before July 1, 1985.

                 (iii)    The agreement once entered is irrevocable.

                 (iv)     Evidence of good health at the time of the agreement
                          will be required.
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                 Payment under such lump sum agreement shall be made by the
                 Company as soon as practicable after payment of the GRP
                 benefit begins.


         3.02  SAVINGS AND STOCK INVESTMENT PLAN EQUALIZATION BENEFITS.

         (a)     PRE-1985 SUBACCOUNT.
                 The provisions of this Subsection 3.02(a) shall apply in
                 determining that part of an eligible employee's SSIP
                 Equalization Benefit subaccount based on periods of service
                 until December 31, 1984.

                 (i)      For an employee who made the election regarding
                          payroll deductions provided in this Subsection, or
                          who elected to have credited under this Plan BEP
                          Salary Reductions, a SSIP Equalization Benefit shall
                          be provided with respect to any class or classes of
                          the SSIP before January 1, 1985 with respect to which
                          Company or employee contributions were subject to the
                          Limitations.

                 (ii)     If at any time during a plan year ending before
                          January 1, 1985 it appeared that contributions by or
                          on behalf of an employee (including any related
                          Company matching contributions) to the SSIP would be
                          subject to the Limitations, such an employee may have
                          elected to have the Company retain in its general
                          funds and have credited for purposes of computing a
                          member's subaccount of the SSIP Equalization Benefit
                          under this Section 3.02(a):

                          (A)     by payroll deduction authorization under this
                                  Plan that portion of the amount the employee
                                  had elected to contribute as employee regular
                                  savings contributions to the SSIP for such
                                  pay period (by a payroll deduction
                                  authorization in effect for such pay period
                                  under paragraph IV of the SSIP) which, when
                                  added to all other actual and projected
                                  Annual Additions as defined under paragraph
                                  XXXI of the SSIP during such plan year,
                                  exceeded the Limitations.

                          (B)     that portion of regular savings and related
                                  earnings which have been returned to the
                                  employee pursuant to the provisions of
                                  paragraph XXXI of the SSIP, and

                          (C)     the employee's BEP Salary Reductions.

                 (iii)    There has been established for each eligible employee
                          a subaccount for periods of participation under this
                          Section 3.02(a) under the SSIP Equalization Benefit
                          Account.  This subaccount shall be equal to the
                          amounts retained by the Company pursuant to Section
                          3.02(a)(ii) of this Plan adjusted on the basis of
                          investment performance and the member's election as
                          to investment of funds under paragraph VIII and
                          transfer of the value of employee and Company
                          contributions under paragraph IX of the SSIP as
                          though contributions and credits to the member's
                          account hereunder had been so invested less any
                          withdrawals pursuant to Section 3.02(a)(iv) of this
                          Plan; provided, however, that an election by a
                          Company officer of investment in Company common stock
                          shall not apply under this Plan with
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                                      -4-


                          respect to contributions pursuant to Section
                          3.02(a)(ii) of this Plan (other than related Company
                          matching contributions) which were made or credited
                          hereunder by or on behalf of such Company officer;
                          and the officer will be required to make any other
                          investment election permitted under paragraph VIII of
                          the SSIP with respect to such amounts.

                 (iv)     An employee may not withdraw any amounts in excess of
                          the member's regular savings contributions under this
                          Plan and may not borrow against the subaccount of the
                          member's SSIP Equalization Benefit.

                 (v)      The SSIP Equalization Benefit under this Section
                          3.02(a) shall be equal to the amount at the time of
                          distribution credited to the employee's subaccount of
                          the SSIP Benefit Equalization Account as determined
                          under Section 3.02(a)(iii) above.

         (b)  POST-1984 SUBACCOUNT.

                 The provisions of this Subsection 3.02(b) shall apply in
                 determining an eligible employee's SSIP Equalization Benefit
                 subaccount based on periods of service beginning January 1,
                 1985.

                 (i)      If at any time during a plan year beginning on or
                          after January 1, 1985 contributions by or on behalf
                          of an employee and related Company matching
                          contributions to the SSIP are subject to the
                          Limitations there shall be credited for purposes of
                          computing a member's SSIP Equalization Benefit under
                          this Section 3.02(b) an amount equal to the Company
                          matching contributions which would have been made
                          under the SSIP based upon the employee's SSIP
                          elections except that such Company matching
                          contributions cannot be made because of the
                          Limitations.

                 (ii)     There shall be established for each eligible employee
                          a subaccount for periods of participation under this
                          Section 3.02(b) under the SSIP Equalization Benefit
                          Account.  This subaccount shall be equal to the
                          amounts credited by the Company pursuant to Section
                          3.02(b)(i) of this Plan adjusted on the basis of
                          investment performance and any election by the member
                          to transfer the value of matured Company matching
                          contributions under paragraph IX of the SSIP, as
                          though credits to the member's account hereunder had
                          been so invested.

                 (iii)    An employee may not withdraw any amounts credited
                          under this Section 3.02(b) and may not borrow against
                          this subaccount of the member's SSIP Equalization
                          Benefit.

                 (iv)     The SSIP Equalization Benefit under this Section
                          3.02(b) shall be equal to the amount at the time of
                          distribution credited to the employee's subaccount of
                          the SSIP Benefit Equalization Account as determined
                          under Section 3.02(b)(ii) above.
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         (c)     PAYMENT OF SSIP EQUALIZATION BENEFIT.

                 The SSIP Equalization Benefit shall be paid in cash by the
                 Company to the employee, or if the employee is deceased, to
                 the employee's beneficiary under the SSIP, and shall be made
                 as soon as practicable after death, retirement or other
                 termination of employment.


SECTION 4.  EQUALIZATION BENEFITS NOT FUNDED.

The Company's obligations under this Plan shall not be funded and Equalization
Benefits under this Plan shall be payable only out of the general funds of the
Company.

SECTION 5.  AMENDMENT, TERMINATION, ETC.

The Board of Directors of the Company shall have the right at any time to
amend, modify, discontinue or terminate this Plan in whole or in part;
provided, however, that no such action shall deprive any person of an
Equalization Benefit under this Plan in respect of any GRP benefit or any SSIP
benefit to which the member's rights shall have become vested (under the
vesting provisions of the applicable Plans, without regard to any provisions
limiting benefits or contributions) prior to the date of such action by the
Board of Directors.

SECTION 6.  ADMINISTRATION AND INTERPRETATION OF THE PLAN.

Full authority to administer and interpret this Plan shall be vested in the
Compensation and Option Committee of the Board of Directors of the Company.
The Committee is authorized from time to time to establish such rules and
regulations as it may deem appropriate for the proper administration of the
Plan, and to make such determinations under, and such interpretations of, and
to take such steps in connection with, the Plan as it may deem necessary or
advisable.  Each determination, interpretation, or other action by the
Committee shall be in its sole discretion and shall be final, binding and
conclusive for all purposes and upon all persons.

References to Articles, Sections or paragraphs of the Code or of the GRP or of
the SSIP shall be applicable to any corresponding provision of the Code or of
the applicable plans containing essentially the same Limitations, in the event
that the applicable Code or plan provisions shall be renumbered.