Exhibit 10.12

CONFIDENTIAL TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT. PORTIONS FOR
WHICH CONFIDENTIAL TREATMENT IS REQUESTED HAVE BEEN MARKED WITH THREE ASTERISKS
[* * *] AND A FOOTNOTE INDICATING “CONFIDENTIAL TREATMENT REQUESTED.” MATERIAL
OMITTED HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMISSION.

Mr. David L. Scheer

Dear David,
Actuant Corporation (“Actuant”) appreciates your leadership and professionalism
during the process for the proposed sale of its Electrical Segment (the “Sale”).
In recognition of your continuing efforts and cooperation, Actuant has developed
the arrangements described in this letter.
1.Retention Bonus. Actuant will pay you the amount of $262,500 within five
business days after the day of the completion of the Sale (the “Closing Date”)
provided that you have continued as an employee of Actuant to the Closing Date.
In addition, Actuant will pay you the amount of $87,500 within five days after
the 180th day following the Closing Date, provided that you have continued as an
employee of the acquiror in the Sale. In the event that your employment by such
acquiror is terminated by the acquiror prior to such 180th day other than as a
result of your misconduct or other good cause, Actuant will pay you this amount
within five business days of notice of such termination.
2.    Business Performance Bonus. You will be eligible for a bonus based on the
performance of the Electrical segment relative to its financial forecast for
fiscal year 2013 as set forth in this paragraph 2, provided that you have
continued as an employee of Actuant to the Closing Date (the “Performance
Bonus”). Promptly following the completion of the Sale, Actuant will calculate
the earnings before interest, taxes, depreciation and amortization of the
Electrical Segment for the period September 2012 - August 31, 2013, on an as
reported basis and consistent with Actuant’s practices (“EBITDA”). The amount of
Performance Bonus which Actuant will pay to you will be determined as follows:

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If EBITDA is:
 
then Performance Bonus Amount is:
[* * *]
 
   $ 0
[* * *]
 
   $ 62,500 (25%)
[* * *]
 
   $125,000 (50%)
[* * *]
 
   $187,500 (75%)
[* * *]
 
   $250,000 (100%)
*Amounts will be interpolated between performance levels
 
 

3.    Additional Performance Bonus. You will be eligible for an additional
performance bonus based on the performance of the Electrical Segment as
reflected in the cash proceeds received by Actuant from the Sale on the Closing
Date [net of retained liabilities of the Electrical Segment and Sale-related
expenses] (the “Sale Proceeds”) as set forth in this paragraph 3 (the “Sale
Bonus”), provided that you have continued as an employee of Actuant to the
Closing Date. The amount of this Additional Performance Bonus which Actuant will
pay to you will be determined as follows:
 
If the Sales Proceeds are:
 
then the Sale Bonus Amount is:
[* * *]
 
$0
[* * *]
 
$100,000
[* * *]
 
$150,000
[* * *]
 
$200,000
[* * *]
 
$250,000
[* * *]
 
$300,000
[* * *]
 
$350,000
[* * *]
 
$400,000
[* * *]
 
$450,000
[* * *]
 
$500,000
*Amounts will be interpolated between performance targets
 
 

4.    Bonus Payments. Any Performance Bonus and Additional Performance Bonus to
which you become entitled hereunder will be payable as follows: (i) 75% of such
amount within five business days after the Closing Date and 25% of such amount
within 5 days after the 180th day following the Closing Date, provided that you
have continued as an employee of the acquiror in the Sale. In the event that
your employment by such acquiror is terminated by the acquiror prior to such
180th day other than as a result of your misconduct or other good cause, Actuant
will pay you this amount within five business days of notice of such
termination.
5.    Actuant Equity Awards. If so approved by the Compensation Committee of the
Board of Directors of Actuant, on the Closing Date, Actuant will accelerate the
vesting of any Actuant stock options and restricted stock units that you own,
provided that you have continued as an employee of Actuant to the Closing Date.

* * * Confidential Treatment Requested

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6.    Change in Control Agreement. The Change in Control Agreement between you
and Actuant, dated April 30, 2012, remains in effect, subject to the Amendment
in Attachment A hereto. None of the Retention Bonus, Performance Bonus or Sale
Bonus will be included in “salary”, “annual bonus” or “annual incentive
compensation” for purposes of Section 2(c) of the Change in Control Agreement.
7.    Withholding. Actuant may withhold from any amounts payable hereunder such
federal, state, local or foreign taxes as shall be required pursuant to any
applicable law or regulation.
8.    Miscellaneous. Nothing in this letter shall be deemed to modify your “at
will” employment by Actuant or that your employment may be terminated by Actuant
at any time.

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Please acknowledge your understanding of and agreement to the terms of this
letter.
 
 
 
 
ACTUANT CORPORATION
 
 
 
 
 
 
 
 
 
By:
/s/ Mark Goldstein
 
Acknowledged and Agreed:
 
 
 
 
 
 
 
 
 
 
/s/ David L. Scheer
 
 
 
 
 
David L. Scheer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Attachment A
Amendment to Actuant Corporation Change in Control Agreement for David L. Scheer
(see attached)