What is a Restricted Stock Equivalent (RSE)?
RSEs may be awarded to you based on achievement of specific objectives. RSEs are phantom shares of Ford Common Stock that convert to bonafide shares of Ford Common Stock after a specified, time-based restriction period. Because they are not “real” shares until the restriction period ends, you will not be eligible to vote the shares, nor are the shares registered in your name. The restriction period for any RSE award granted to you in 2006, based on achievement of specific objectives for 2005, is one year from the date of the award. Will I Receive Dividends on my RSE Award During the Restriction Period? Since you do not actually own shares of stock, you will not receive dividends. However, you will receive cash dividend equivalents during the restriction period that mirror any cash dividend payment on Ford Common Stock. These payments will be made quarterly by Payroll as soon as practicable after the dividend payment date. What Happens When the Restriction Period Lifts? At the end of th
