Exhibit
10-F
SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
As
applicable to retirements of Eligible Executives on or after January 1,
19921
Amended
through October 1, 2006
Section
1. Introduction. On
January 1, 1985, the Company established this Plan for the purpose of providing
Eligible Executives, hired or rehired prior to January 1, 2004, with a monthly
Supplemental Benefit for their lifetime in the event of their retirement from
employment with the Company under certain circumstances. The Plan also provides
for the award of Conditional Annuities and Pension Parity Benefits to selected
Eligible Executives under certain circumstances.
Section
2. Definitions. As
used
in the Plan, the following terms shall have the following meanings,
respectively:
2.01
"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.
2.02
" Annual Incentive Compensation Plan"
shall mean the Annual Incentive Compensation Plan of Ford Motor Company, as
it
may be amended.
2.03
"Committee"
shall mean the Compensation Committee of Ford Motor Company.
2.04
"Company"
shall mean Ford Motor Company and such of the subsidiaries of Ford Motor Company
as, with the consent of Ford Motor Company, shall have adopted this
Plan.
2.05
"Credited
Service"
shall mean, without duplication, the years and any fractional year of credited
service at retirement, not exceeding one year for any calendar year, of the
Eligible Executive under all the Retirement Plans.
2.06
"Designated
Beneficiary"
shall
mean the beneficiary or beneficiaries designated by an Eligible Executive or
Eligible Retired Executive in a writing filed with the Company (subject to
such
limitations as to the classes and number of beneficiaries and contingent
beneficiaries and such other limitations as the Committee may prescribe) to
receive, in the event of the death of the Eligible Executive or Eligible Retired
Executive, the Death Benefits provided in Section 4.04. An Eligible Executive
or
Eligible Retired Executive shall be deemed to have designated as beneficiary
or
beneficiaries under the Plan the person or persons who receive such Eligible
Executive's or Eligible Retired Executive's life insurance proceeds under the
Company-paid Basic Life Insurance Plan, unless such Eligible Executive or
Eligible Retired Executive shall have assigned such life insurance proceeds,
in
which event the Death Benefits shall be paid to such assignee; provided,
however, that if the Eligible Executive or Eligible Retired Executive shall
have
filed with the Company a written designation of a different beneficiary or
beneficiaries under the Plan, such beneficiary form shall control. An Eligible
Executive or Eligible Retired Executive 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 payment under the Plan, the same may be paid to
the
legal representatives of the Eligible Executive or Eligible Retired Executive,
in which case the Company, the Committee and the members thereof shall not
be
under any further liability to anyone.
1See
Appendix A for provisions applicable to retirements of Eligible Executives
on or
after January 1, 1985 and prior to January 1, 1992 or retirements of Eligible
Executives from certain former Company Affiliates.
2.07
"Eligible
Executive"
shall
mean a person who is the Executive Chairman, Chief Executive Officer, an
Executive Vice President, a Group Vice President or a Vice President of the
Company (excluding any such person who is an employee of a foreign Affiliate
of
the Company) or a Company employee in Leadership Level Four or above, or its
equivalent, (but for periods prior to July 1, 1996, excluding a Company employee
who is an employee of Jaguar Cars, a division of the Company).
2.08
"Eligible
Retired Executive"
shall
mean
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(a)
with respect to Supplemental Benefits, an Eligible Executive
who
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(1)
retires directly from Company employment (i) on normal or disability
retirement or (ii) with the approval of the Company at or after age
55 on
early retirement;
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(2)
will receive a normal, disability or early retirement benefit under
one or
more Retirement Plans;
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(3)
has at least ten years of Credited Service without duplication under
all
Retirement Plans; and
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(4)
has at least five continuous years of Eligibility Service immediately
preceding retirement (unless the eligibility condition set forth
in this
subparagraph (4) is waived by the Chairman of the Board or the President
and Chief Executive Officer).
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(b)
with respect to Conditional Annuity awards and Pension Parity Benefits,
an
Eligible Executive (other than an Eligible Executive in Leadership
Levels
Four through Two or its equivalent) who retires directly from Company
employment, (i) on normal or disability retirement or (ii) with the
approval of the Company at or after age 55 on early
retirement.
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2.09
"Eligible
Surviving Spouse"
shall
mean, for purposes of the Pension Parity Surviving Spouse Benefit, a surviving
spouse to whom an Eligible Retired Executive has been married at least one
year
at the date of the Eligible Retired Executive's death.
2.10
"Eligibility
Service"
shall
mean Company service while an Eligible Executive.
2.11
"FE&R"
shall
mean Ford Electronics and Refrigeration LLC, but for periods prior to February
1, 1999 shall mean Ford Electronics and Refrigeration Corporation.
2.12
"FE&R
Retirement Plan"
means
FE&R Section of the GRP, applicable to salaried employees, as it may be
amended.
2.13
"Final
Five Year Average Base Salary"
means
the average of the final five year-end Monthly Base Salaries immediately
preceding retirement of the Eligible Retired Executive.
2.14
"Final
Three Year Average Base Salary"
means
the average of the final three year-end Monthly Base Salaries immediately
preceding retirement or death of the Eligible Retired Executive.
2.15
"General
Retirement Plan"
or
"GRP"
means
the Ford Motor Company General
Retirement Plan, as it may be amended.
2.16
"Internal Revenue Code" or "Code" shall
mean the Internal Revenue Code of 1986, as amended from time to
time.
2.17
"Monthly
Base Salary"
of an
Eligible Executive means the monthly base salary paid to such person while
an
Eligible Executive on December 31, prior to giving effect to any salary
reduction agreement pursuant to an employee benefit plan, as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended, (i)
to
which Code Section 125 or Code Section 402(e)(3) applies or (ii) which provides
for the elective deferral of compensation. It does not include supplemental
compensation or any other kind of extra or additional compensation.
2.18
"Plan"
means
the Supplemental Executive Retirement Plan of Ford Motor Company, as
amended.
2.19
"Retirement
Plans"
includes the General Retirement Plan and the FE&R Retirement Plan for
periods prior to July 1, 2000.
2.20
"Separation From Service" shall
mean termination from Company employment.
2.21
"Specified Employee"
shall
mean an employee of the Company who is a Key Employee as defined in Code Section
416(i) without regard to paragraph 5 thereof. A Specified Employee shall be
identified as of December 31st
of each
calendar year and shall apply to any Specified Employee who shall incur a
Separation From Service in the 12-month period commencing January 1st
of the
immediately succeeding calendar year. This provision is effective for Specified
Employees who incur a Separation From Service on or after January 1,
2005.
2.22
"Subsidiary"
shall
mean, as applied with respect to any person or legal entity specified, (i)
a
person or legal entity a majority of the voting stock of which is owned or
controlled, directly or indirectly, by the person or legal entity specified
or
(ii) any other type of business organization in which the person or legal entity
specified owns or controls, directly or indirectly, a majority
interest.
Section
3. Supplemental Benefits.
3.01
Eligibility.
An
Eligible Retired Executive shall be eligible to receive a Supplemental Benefit
as provided herein.
3.02
Amount of Supplemental Benefit.
(a)
Subject to any reductions pursuant to Subsection (b) below and to any
limitations and reductions pursuant to other provisions of the Plan, the monthly
Supplemental Benefit shall be an amount equal to the Eligible Executive's Final
Five Year Average Base Salary multiplied by the Eligible Executive's years
of
Credited Service at retirement, and further multiplied by the Applicable
Percentage based on the Eligible Executive's position or salary grade
immediately preceding retirement, as follows:
For
retirements on or after January 1, 1992 but prior to August 1, 1995
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Status
at Retirement
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Applicable
Percentage
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Chairman,
Vice Chairman, President
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.90%
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Executive
Vice President
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.80%
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Vice
President
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.70%
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Non-Vice
Presidents
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-
Salary Grade 21, 20, 19
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.60%
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-
Salary Grade 18, 17, 16
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.40%
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-
Salary Grade 15, 14, 13
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.20%
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For
retirements on or after August 1, 1995 but prior to February 1,
2000
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Status
at Retirement
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Applicable
Percentage
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|||
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Vice
President Band
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||||
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-
Chairman, Vice Chairman, President
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.90%
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-
Executive Vice President
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.80%
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-
Group Vice President
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.75%
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-
Vice President
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.70%
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Non-Vice
President
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-
General Executive Band
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.60%
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-
Executive Band
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.40%
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-
Salary Grade 15, 14, 13
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.20%
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For
retirements on or after February 1, 2000
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Status
at Retirement
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Applicable
Percentage
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Leadership
Level One
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||||
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-
Executive Chairman, Vice Chairman, President
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.90%
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-
Executive Vice President
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.80%
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-
Group Vice President
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.75%
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-
Vice President
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.70%
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Leadership
Level Two2
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-
Standard Benefit
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.40%
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-
Non-standard Benefit3
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.60%
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Leadership
Level Three
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.20%
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Leadership
Level Four
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.20%
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2 General
Executive Band Eligible Executives who, on or after January 1, 2000 were
reclassified as Leadership Level Two Employees, shall retain their entitlement
to the .60% Applicable Percentage regardless of the
reclassification.
3The
non-standard benefit will be available for Leadership Level Two Eligible
Executives only upon approval of the
Executive Chairman , Executive Vice President and Chief Financial Officer and
Group Vice President- Corporate Human Resources and Labor
Affairs.
(b)
For
an Eligible Retired Executive who shall retire before age 62 the monthly
Supplemental Benefit payable hereunder shall equal the amount calculated in
accordance with the immediately preceding Subsection (a) reduced by 5/18 of
1%
multiplied by the number of months from the later of the date the Supplemental
Benefit commences or age 55 in the case of earlier receipt by reason of
disability retirement to the first day of the month after the Eligible Retired
Executive would attain age 62.
| 3.03 |
Payments.
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(a) Subject
to the earning-out conditions set forth in Section 6, Supplemental Benefits,
in
the amount determined under Section 3.02, shall be payable out of the Company's
general funds monthly beginning:
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(i) on
the first day of the month when the Eligible Retired Executive's
retirement benefit under any Retirement Plan or under the Company's
Executive Separation Allowance Plan begins;
or
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(ii) for
distributions commencing on or after January 1, 2005, on the first
day of
the month following the date that is the later of the date on which
the
Eligible Executive:
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| 1) |
reaches
at least age 55 with 10 years of service; or
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| 2) |
has
a Separation From Service.
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(b) Notwithstanding
any other provisions of the Plan to the contrary, if a Specified Employee incurs
a Separation From Service, payment of any Supplemental Benefit accrued or vested
after December 31, 2004 shall not commence (or be paid) earlier than the first
day of the seventh month following the Separation From Service. The payment
delayed under this Section shall not bear interest.
(c) Payments
to an Eligible Retired Executive hereunder shall cease at the end of the month
in which the Eligible Retired Executive dies.
Section
4. Conditional Annuities.
4.01
Eligibility.
The
Committee may, in its discretion, award to an Eligible Executive (other than
an
Eligible Executive in Leadership Levels Four through Two or its equivalent)
additional retirement income in the form of a Conditional Annuity.
4.02
Amount of Conditional Annuity.
(a)
In
determining the amount of any Conditional Annuity to be awarded to an Eligible
Executive for any year, the Committee shall consider the Company's profit
performance and the amount that is awarded to such Eligible Executive for such
year under the Annual Incentive Compensation Plan. Awards shall be made only
for
years in which the Committee has decided, for reasons other than individual
or
corporate performance or termination of employment, to make an award to an
Eligible Executive under the Annual Incentive Compensation Plan which is less
than would have been awarded if the historical relationship to awards to other
executives had been followed.
(b)
The
aggregate annual amount payable under the Conditional Annuities awarded to
any
Eligible Executive shall not exceed an amount equal to the Applicable Percentage
of the average of such Eligible Executive's Final Three Year Average Base
Salary, determined in accordance with the following table:
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Applicable
Percentage
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|||||||
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Number
of Years for which a Conditional
Annuity is awarded
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Chairman,
Vice Chairman
and President
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All
Other Eligible
Executives
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1
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30%
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20%
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2
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35
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25
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3
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40
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30
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4
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45
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35
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5
or more
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50
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40
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The
percentage shall be reduced pro rata to the extent that service at retirement
is
less than 30 years.
4.03
Payments.
(a) Subject
to the earning-out conditions set forth in Section 6, Conditional Annuities,
in
the amount determined under Section 4.02, shall be payable to an Eligible
Executive out of the Company's general funds monthly beginning:
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(i)
on
the first day of the month when the Eligible Retired Executive's
retirement benefit under any Retirement Plan or under the Company's
Executive Separation Allowance Plan begins;
or
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(ii) for
distributions commencing on or after January 1, 2005, on the first
day of
the month following the date that is the later of the date on which
the
Eligible Executive:
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| 1) |
reaches
at least age 55 with 10 years of service; or
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| 2) |
has
a Separation From Service.
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(b) Notwithstanding
any other provisions of the Plan to the contrary, if a Specified Employee incurs
a Separation From Service, payment of any Conditional Annuities accrued or
vested after December 31, 2004 shall not commence (or be paid) earlier than
the
first day of the seventh month following the Separation From Service. The
payment delayed under this Section shall not bear interest.
(c) Except
as
provided in Section 4.04, payments with respect to an Eligible Retired Executive
hereunder shall cease at the end of the month in which such Eligible Retired
Executive dies.
(d) For
an
Eligible Executive who retires before age 65, the monthly payment under any
Conditional Annuity awarded to such Eligible Executive shall equal the actuarial
equivalent (based on factors determined by the Company's independent consulting
actuary) of the monthly amount payable for retirement at age 65.
4.04
Death Benefits.
Upon
death before retirement but at or after age 55, the Eligible Executive's
Designated Beneficiary shall be paid a lump sum equal to 30 times (representing
30 months) the aggregate monthly amount payable under such Eligible Executive's
Conditional Annuities if the Eligible Executive had been age 55 at death,
increased by one-third of one month for each full month by which such Eligible
Executive's age at death shall exceed age 55. If death occurs within 120 months
following retirement, the monthly payments under the Conditional Annuity shall
be continued to the Designated Beneficiary for the remaining balance of the
120
month period following retirement.
Section
5. Pension Parity Benefits.
Section
5.01 Eligibility.
For
retirements on or after October 1, 1998, an Eligible Retired Executive at Ford
Motor Company (U.S.) or Ford Motor Credit Company (U.S.) who held the position
of a Vice President or above at Ford Motor Company (U.S.) immediately prior
to
retirement and who had service with a subsidiary, including an international
subsidiary, at any time prior to becoming an employee of Ford Motor Company
(U.S.) or Ford Motor Credit Company (U.S.) shall be eligible to receive a
Pension Parity Benefit as provided below.
Section
5.02 Amount of Pension Parity Benefit.
The
monthly Pension Parity Benefit shall be an amount equal to the difference
between (i) and (ii), where (i) is the amount of the monthly retirement benefit
which would be payable under the GRP, the Executive Separation Allowance Plan
("ESAP"), the Benefit Equalization Plan ("BEP"), and the Select Retirement
Plan
("SRP") if all of the Eligible Retired Executive's years of service under the
GRP/ESAP/BEP/SRP and each of the subsidiary's retirement plans were counted
as
years of contributory service under the GRP/ESAP/BEP/SRP and (ii) is the amount
of monthly retirement benefit that is or was payable under the GRP/ESAP/BEP/SRP,
under the subsidiary's retirement plans, under this Plan as a Supplemental
Benefit or a Conditional Annuity, if applicable, or under any other plan
sponsored by a subsidiary which provided pension-type benefits (and if such
benefits were paid in a lump sum as a termination benefit, this Plan shall
convert the lump sum into an actuarial equivalent annuity (as determined by
an
independent actuary appointed by Ford Motor Company) payable in the same form
as
the GRP pension payable to the Eligible Retired Executive, or as was otherwise
required pursuant to a qualified domestic relations order for purposes of
determining the appropriate offset.)
Section
5.03 Pension Parity Surviving Spouse Benefits.
An
Eligible Surviving Spouse shall be entitled to receive a monthly Pension Parity
Surviving Spouse Benefit upon the death of the Eligible Retired Executive in
an
amount equal to the difference between (i) and (ii), where (i) is the actuarial
equivalent (as determined by an independent actuary appointed by Ford Motor
Company) of the amount of the monthly survivor's benefit that would be payable
under the GRP, the ESAP, the BEP, and the SRP if all of the Eligible Retired
Executive's years of service under the GRP/ESAP/BEP/SRP and each of the
subsidiary's retirement plans were counted as years of contributory service
under the GRP/ESAP/BEP/SRP and (ii) is the actuarial equivalent (under the
method described in (i) above) of the amount of the monthly survivor's benefit
that is or was payable under the GRP/ESAP/BEP/SRP, under Section 4.04 if the
Designated Beneficiary was an Eligible Surviving Spouse, under the subsidiary's
retirement plans, or under any other plan sponsored by a subsidiary which
provided pension-type survivor benefits.
Section
5.04 Payment.
(a) Subject
to the earning-out conditions set forth in Section 6, the Pension Parity
Benefit, in the amount determined under Section 5.02 shall be payable to
anEligible Executive out of the Company's general funds monthly
beginning:
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(i) on
the first day of the month when the Eligible Retired Executive's
retirement benefit under any Retirement Plan or under the ESAP commences;
or
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(ii) for
distributions commencing on or after January 1, 2005, on the first
day of
the month following the date that is the later of the date on which
the
Eligible Executive:
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| 1) |
reaches
at least age 55 with 10 years of service;
or
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| 2) |
has
a Separation From Service
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(b) Notwithstanding
any other provisions of the Plan to the contrary, if a Specified Employee incurs
a Separation From Service, payment of any Pension Parity benefit, accrued or
vested after December 31, 2004 shall not commence (or be paid) earlier than
the
first day of the seventh month following Separation from Service. The payment
delayed under this Section shall not bear interest.
(c) Payments
to an Eligible Retired Executive hereunder shall cease at the end of the month
in which the Eligible Retired Executive dies. The Pension Parity Surviving
Spouse Benefit, in the amount determined under Section 5.03, shall be payable
out of the Company's general funds monthly beginning on the first day of the
month following the Eligible Retired executive's death. Pension Parity Surviving
Spouse Benefits paid to an Eligible Surviving Spouse shall cease at the end
of
the month in which the Eligible Surviving Spouse dies.
Section
5.05 Administration and Interpretation.
The
Group Vice President -Corporate Human Resources and Labor Affairs and the
Executive Vice President and Chief Financial Officer shall have the full power
and authority to develop uniform administrative rules and procedures to
administer the Pension Parity Benefit and the Pension Parity Surviving Spouse
Benefit, and specifically shall have the authority to develop rules to cover
specific situations that may require that the Pension Parity Benefit or the
Pension Parity Surviving Spouse Benefit to be adjusted to reflect retirement
payments from other sources in respect of prior subsidiary service of the
Eligible Retired Executive. In the event of a change in the designated officer's
title, the officer or officers with functional responsibility for Retirement
Plans shall have the power and authority to administer and interpret this
Plan.
Section
6. Earning Out Conditions.
Anything
herein contained to the contrary notwithstanding, the right of any Eligible
Retired Executive to receive Supplemental Benefit, Conditional Annuity or
Pension Parity payments hereunder for any month shall accrue only if, during
the
entire period from the date of retirement to the end of such month, the Eligible
Retired Executive shall have earned out such payment by refraining from engaging
in any activity that is directly or indirectly in competition with any activity
of the Company or any Subsidiary or Affiliate thereof.
In
the
event of an Eligible Retired Executive's nonfulfillment of the condition set
forth in the immediately preceding paragraph, no further payment shall be made
to the Eligible Retired Executive or the Designated Beneficiary; 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:
(1)
with
respect to any such Eligible Retired Executive who at any time shall have been
a
member of the Board of Directors, an Executive Vice President, a Group Vice
President, a Vice President, the Treasurer, the Controller or the Secretary
of
the Company, such waiver may be granted by the 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 or Affiliate
thereof by reason of the nonfulfillment of such condition; and
(2)
with
respect to any other such Eligible Retired Executive, such waiver may be granted
by the Annual Incentive Compensation Committee of Ford Motor Company (or any
committee appointed for the purpose) upon its determination that in its sole
judgment there shall not have been and will not be any such substantial adverse
effect.
Anything
herein contained to the contrary notwithstanding, Supplemental Benefit,
Conditional Annuity and Pension Parity payments shall not be paid to or with
respect to any person as to whom it has been determined that such person at
any
time (whether before or subsequent to termination of employment) acted in a
manner inimical to the best interests of the Company. Any such determination
shall be made by (i) the Committee with respect to any Eligible Retired
Executive who at any time shall have been a member of the Board of Directors,
an
Executive
Vice President, a Group Vice President, a Vice President, the Treasurer, the
Controller or the Secretary of the Company, and (ii) the Annual Incentive
Compensation Committee of Ford Motor
Company (or any committee appointed for the purpose) with respect to any other
Eligible Retired Executive, and shall apply to any amounts payable after the
date
of
the
applicable committee's action hereunder, regardless of whether the Eligible
Retired Executive has commenced receiving any benefits hereunder. Conduct which
constitutes engaging in an activity that is directly or indirectly in
competition with any activity of the Company or any Subsidiary or Affiliate
thereof shall be governed by the two immediately preceding paragraphs of this
Section 6 and shall not be subject to any determination under this
paragraph.
Section
7. General Provisions.
7.01
Administration and Interpretation.
An
otherwise Eligible Executive's early retirement under the Plan is subject to
approval by the Executive Personnel Committee. Except as otherwise provided
in
the preceding sentence and except as the committees specified in Sections 4
and
6 are authorized to administer the Plan in certain respects, the Group Vice
President - Corporate Human Resources and Labor Affairs and the Executive Vice
President and Chief Financial Officer shall have full power and authority on
behalf of the Company to administer and interpret the Plan. In the event of
a
change in a designated officer's title, the officer or officers with functional
responsibility for Retirement Plans shall have the power and authority to
administer and
interpret the Plan. All decisions with respect to the administration and
interpretation of the Plan shall be final and shall be binding upon all
persons.
7.02
Deductions.
The
Company may deduct from any payment of Supplemental Benefits, Conditional
Annuity awards, or Pension Parity Benefits to an Eligible Retired Executive
or
Pension Parity Surviving Spouse Benefits to an Eligible Surviving Spouse all
amounts owing to it by such Eligible Retired Executive or Eligible Surviving
Spouse for any reason, and all taxes required by law or government regulation
to
be deducted or withheld.
7.03
No Contract of Employment. The
Plan
is an expression of the Company's present policy with respect to Company
executives who meet the eligibility requirements set forth herein; it is not
a
part of any contract of employment. No Eligible Executive, Designated
Beneficiary, Eligible Surviving Spouse or any other person shall have any legal
or other right to any Supplemental Benefit, Conditional Annuity, Pension Parity
Benefit or Pension Parity Surviving Spouse Benefit.
7.04
Governing Law.
Except
as otherwise provided under federal law, the Plan and all rights thereunder
shall be governed, construed and administered in accordance with the laws of
the
State of Michigan.
7.05
Amendment or Termination.
The
Company reserves the right to modify or amend, in whole or in part, or to
terminate this Plan, at any time without notice.
7.06
Local Payment Authorities. The
Vice
President and Treasurer and the Assistant Treasurer (or in the event of a change
in title, their functional equivalent) may act individually to delegate
authority to administrative personnel to make benefit payments to Eligible
Retired Executives in accordance with plan provisions.
7.07 Code
Section 409A
(a) With
respect to benefits accrued or vested after December 31, 2004, the Company
reserves the right to take such action, on a uniform basis, as the Company
deems
necessary or desirable to ensure compliance with Code Section 409A, and
applicable additional regulatory guidance thereunder, or to achieve the goals
of
the Plan without having adverse tax consequences under this Plan for any
employee or beneficiary.
(b) After
receipt of Plan benefits accrued or vested after December 31, 2004, the
obligations of the Company with respect to such benefits shall be satisfied
and
no Eligible Executive, Eligible Surviving Spouse, or Designated Beneficiary
shall have any further claims against the Plan or the Company with respect
to
Plan benefits accrued or vested after December 31, 2004.
Section
8. Claim for Benefits
8.01
Denial of a Claim. A
claim
for benefits under the Plan shall be submitted in writing to the plan
administrator. If a claim for benefits or participation is denied in whole
or in
part by the plan administrator, the Eligible Retired Executive will receive
written notification within a reasonable period from the date the claim for
benefits or participation is received. Such notice shall be deemed given upon
mailing, full postage prepaid in the United States mail or on date sent
electronically to the Eligible Retired Executive. If the plan administrator
determines that an extension of time for processing is required, written notice
of the extension shall be furnished to the Eligible Retired Executive as soon
as
practical.
8.02
Review of Denial of Claim.
In the
event that the plan administrator denies a claim for benefits or participation,
an Eligible Retired Executive may request a review by filing a written appeal
to
the Group Vice President - Corporate Human Resources and Labor Affairs and
the
Executive Vice President and Chief Financial Officer, or their designee(s),
within sixty (60) days of receipt of the written notification of denial. The
appeal will be considered and a decision shall be rendered as soon as practical.
In the event an extension of time is needed to consider the appeal and render
the decision, written notice shall be provided to the Eligible Retired Executive
notifying them of such time extension.
8.03
Decision on Appeal. The
decision on review of the appeal shall be in writing. Such notice shall be
deemed given upon mailing, full postage prepaid in the United States mail or
on
the date sent electronically to the Eligible Retired Executive. Decisions
rendered on the appeal are final and conclusive and are only subject to the
arbitrary and capricious standard of judicial review.
8.04
Limitations Period. No
legal
action for benefits under the Plan may be brought against the Plan until after
the claims and appeal procedures have been exhausted. Legal actions under the
Plan for benefits must be brought no later than two (2) years after the claim
arises. No other action may be brought against the Plan more than six (6) months
after the claim arises.
Appendix
A
Applicable
to retirements of Eligible Executives on or after January 1, 1985 but prior
to
January 1, 1992, or retirements of Eligible Executives from certain former
Company Affiliates.
Section
1. Definitions.
The
terms used in this Appendix shall have the same meaning as those in the
Supplemental Executive Retirement Plan, except as follows:
1.01 "Contributory
Service"
shall
mean without duplication the years and any fractional year of contributory
service at retirement, not exceeding one year for any calendar year, of the
Eligible Executive under all Retirement Plans.
1.02 "Eligible
Executive"
shall
mean a person who is the Chairman of the Board and Chief Executive Officer,
an
Executive Vice President or a Vice President of the Company (excluding any
such
person who is an employee of a foreign Affiliate of the Company) or a Company
employee in Salary Grade 13 or its equivalent or above (Salary Grade 20 or
its
equivalent or above for Company employees prior to January 1,
1989).
Section
2. Supplemental Benefits.
2.01 Eligibility.
An
Eligible Retired Executive shall be eligible to receive a Supplemental Benefit
as provided herein.
2.02 Amount
of Supplemental Benefit.
(a)
Subject to any reductions pursuant to Subsection (b) below and to any
limitations and reductions pursuant to other provisions of the Plan, the monthly
Supplemental Benefit shall be an amount determined as follows:
(1)
For
those employees who were Eligible Executives on or after January 1, 1989 and
retired prior to January 1, 1992, an amount equal to the Eligible Executive's
Final Five Year Average Base Salary multiplied by the Eligible Executive's
years
of Contributory Service at retirement, and further multiplied by the Applicable
Percentage based on the Eligible Executive's position or salary grade
immediately preceding retirement and on when the Contributory Service occurred,
as follows:
|
Status
at Retirement
|
Applicable
Percentage
|
||||||
|
Contributory
Service
before
1/1/89
|
Contributory
Service
from
1/1/89
|
||||||
|
Chairman,
Vice Chairman,
|
|||||||
|
President
|
.60%
|
|
|
.90%
|
|
||
|
Executive
Vice President
|
|
|
.50%
|
|
|
.80%
|
|
|
Vice
Presidents
|
|
|
|
|
|
|
|
|
Salary
Grade 23
|
|
|
.40%
|
|
|
.70%
|
|
|
Salary
Grade 22
|
|
|
.40%
|
|
|
.70%
|
|
|
Salary
Grade 21
|
|
|
.40%
|
|
|
.70%
|
|
|
Salary
Grade 20
|
|
|
.40%
|
|
|
.70%
|
|
|
Non-Vice
Presidents
|
|
|
|
|
|
|
|
|
Salary
Grade 21
|
|
|
.30%
|
|
|
.60%
|
|
|
Salary
Grade 20
|
|
|
.30%
|
|
|
.60%
|
|
|
Salary
Grade 19
|
|
|
.30%
|
|
|
.60%
|
|
|
Salary
Grade 18, 17, 16
|
|
|
.20%
|
|
|
.40%
|
|
|
Salary
Grade 15, 14, 13
|
|
|
.10%
|
|
|
.20%
|
|
(2)
For
those employees who were Eligible Executives prior to January 1, 1989 and who
retired prior to January 1, 1992, the greater of (A) or (B):
(A)
the
Eligible Executive's Final Five Year Average Base Salary multiplied by the
Eligible Executive's Credited Service, and further multiplied by the Applicable
Percentage based on the Eligible Executive's position or salary grade
immediately preceding retirement, as follows:
|
Status
at Retirement
|
Applicable
Percentage
|
|||
|
Chairman,
Vice Chairman,
|
||||
|
President
|
.50%
|
|
||
|
Executive
Vice President
|
.40%
|
|
||
|
Vice
President
|
|
|||
|
Salary
Grade 23
|
.35%
|
|
||
|
Salary
Grade 22
|
.30%
|
|
||
|
Salary
Grade 21
|
.25%
|
|
||
|
Salary
Grade 20
|
.20%
|
|
||
|
Non-Vice
Presidents
|
|
|||
|
Salary
Grade 21
|
.25%
|
|
||
|
Salary
Grade 20
|
.20%
|
|
||
(B)
the
Eligible Executive's Final Five Year Average Base Salary multiplied by the
Eligible Executive's Contributory Service, and further multiplied by the
Applicable Percentage set forth in Section (a)(1) above based on the Eligible
Executive's position or salary grade immediately preceding retirement and on
when the Contributory Service occurred.
(b)
For
an Eligible Retired Executive who shall retire before age 62 the monthly
Supplemental Benefit payable hereunder shall equal the amount calculated in
accordance with the immediately preceding Subsection (a) reduced by 5/18 of
1%
multiplied by the number of months from the later of the date the Supplemental
Benefit commences or age 55 in the case of earlier receipt by reason of
disability retirement to the first day of the month after the Eligible Retired
Executive would attain age 62.
Section
3. Former Affiliates and Former Employees.
3.01
Ford Aerospace Corporation.
An
employee of Ford Aerospace Corporation who was a Vice President of Ford Motor
Company as of April 1, 1985 and retired May 1, 1985 shall be deemed to be an
Eligible Executive under the Plan only for Supplemental Benefits and shall
be
eligible to receive such benefits under the Plan based on Credited Service
under
the Salaried Retirement Plan of Ford Aerospace Corporation.
3.02
Ford
New Holland, Inc.
The
following shall be applicable to former employees of Ford Tractor Operations
who
were transferred to Ford New Holland (FNH) and who participated in the General
Retirement Plan for service through December 31, 1989 ("FNH
Employees").
(a)
Retirement-Eligible FNH Employees as of January 1, 1989.
A
FNH
Employee who was eligible to retire under the General Retirement Plan on or
prior to January 1, 1989, and who was in a position equivalent to a Salary
Grade
13 or above on December 31, 1989, and who retires directly from FNH shall be
deemed to be an Eligible Executive under the Plan only for Supplemental Benefits
and shall receive such benefits as are applicable under the terms of the Plan
in
effect at the date of retirement, if retired prior to January 1, 1992, or the
terms of the Plan in effect on January 1, 1992, if retired on or after January
1, 1992; provided, however, that for purposes of calculating the Supplemental
Benefit, the Plan shall use (i) the employee's position or salary grade at
FNH
as of December 31, 1989; (ii) the Final Five Year Average Base Salary
immediately preceding retirement of the Eligible Executive from FNH; and (iii)
the employee's Credited Service or Contributory Service, as applicable, as
of
December 31, 1989.
(b)
Non-Retirement Eligible Employees as of January 1, 1989.
A
FNH
Employee who was not eligible to retire under the General Retirement Plan on
or
prior to January 1, 1989, and who was in a position equivalent to a Salary
Grade
13 or above on December 31, 1989, and who retires directly from FNH shall be
deemed to be an Eligible Executive under the Plan only for Supplemental Benefits
and shall receive such benefits as are applicable under the terms of the Plan
in
effect as of January 1, 1989; provided, however, that for purposes of
calculating the Supplemental Benefit, the Plan shall use (i) the employee's
position or salary grade at FNH as of December 31, 1989; (ii) the Final Five
Year Average Base Salary as of January 1, 1989; and (iii) the employee's
Contributory Service as of December 31, 1989.
3.03 Sale
of Favesa Operations to Lear Seating Corporation.
An
Eligible Executive whose employment was transferred to Lear Seating Corporation
by reason of the sale of a portion of Plastic and Trim Product Division's seat
operations to Lear on November 1, 1993 and who was eligible to retire under
the
terms of the General Retirement Plan as of December 31, 1993, shall retain
eligibility to receive a Supplemental Benefit, and shall receive such benefits
as are applicable under the terms of the Plan in effect as of December 31,
1993;
provided, however that for purposes of calculating the Supplemental Benefit,
the
Plan shall use (i) the employee's position or salary grade with the Company
as
of December 31, 1993; (ii) the Final Five Year Average Base Salary as of
December 31, 1993; and (iii) the employee's Credited Service as of December
31,
1993.
3.04
Visteon Corporation. The
following shall be applicable to employees of Ford who were transferred to
Visteon Corporation on April 1, 2000 ("U.S. Visteon Employees") and who ceased
active participation in the Plan as of June 30, 2000 after Visteon Corporation
was spun-off from Ford, June 28, 2000.
| (a) |
Group
I and Group II Employees.
|
|
For
purposes of this paragraph, a "Group I Employee" shall mean a U.S.
Visteon
Employee who as of July 1, 2000 was eligible for immediate normal
or
regular early retirement under the provisions of the GRP as in effect
on
July 1, 2000. A "Group II Employee" shall mean a U.S. Visteon Employee
who
(i) was not a Group I Employee; (ii) had as of July 1, 2000 a combination
of age and continuous service that equals or exceeds sixty (60) points
(partial months disregarded); and (iii) could become eligible for
normal
or regular early retirement under the provisions of the GRP as in
effect
on July 1, 2000 within the period after July 1, 2000 equal to the
employee's Ford service as of July 1, 2000. A Group I or Group II
Employee
shall retain eligibility to receive a Supplemental Benefit and shall
receive such benefits as are applicable under the terms of the Plan
in
effect on the retirement date, based on meeting eligibility criteria
as of
July 1, 2000 and Credited Service on July 1, 2000 and the Final Five
Year
Average Base Salary as of the retirement
date.
|
|
(b)
|
Group
III Employees.
|
|
For
purposes of this paragraph, a "Group III Employee" shall mean a U.S.
Visteon Employee who participated in the GRP prior to July 1, 2000
other
than a Group I or Group II Employee. The Plan shall have no liability
for
any benefits payable to Group III Employees who were otherwise eligible
hereunder with respect to Credited Service prior to July 1, 2000
on or
after July 1, 2000.
|
Section
4. General.
Except
as otherwise provided in this Appendix A, the terms of the Plan applicable
to
retirements of Eligible Executives on or after January 1, 1992 shall be
applicable to the retirements of Eligible Executives on or after January 1,
1985
but prior to January 1, 1992.