Exhibit 10.1(z)

EXECUTIVE EMPLOYMENT AGREEMENT

THIS AGREEMENT (this "Agreement") is made as of the1st day of July 1, 2003(the "Effective
Date"), by and betweenSauer-Danfoss Inc.(the "Company") andRonald C. Hanson(the "Executive").

WHEREAS,
the Company desires to provide for the continued employment of the Executive on the terms and conditions set forth herein, in the best interest of the Company and its
constituencies; and

WHEREAS,
the Executive desires to continue to be employed by the Company as provided herein; and

NOW,
THEREFORE, in consideration of the premises and the respective covenants, promises and agreements of the parties herein contained, the parties agree as follows:

1.Employment.    The Company agrees to continue to employ the Executive and the
Executive agrees to continue to be employed on a full-time basis by the Company for the period and upon the terms and conditions specified herein.

2.Term; Employment Period.    The term of this Agreement (the "Term") shall begin on
the Effective Date and continue until terminated according to Section 6 of this Agreement. The period during which the Executive is employed by the Company is referred to as the "Employment
Period." The date on which the termination of the Executive's employment becomes effective is referred to as the "Termination Date."

3.Position and Duties.    During the Employment Period, the Executive shall serve as Vice President-Human Resourcesof
the Company and shall have such responsibilities, duties and authority as set forth
in the Bylaws of the Company and such additional responsibilities, duties and authority as the Company's President and Chief Executive Officer or the Company's Board of Directors (the "Board") shall
determine from time to time. During the Employment Period, the Executive shall report to the Company's President and Chief Executive Officer or the Chief Executive Officer's designee. The Executive
shall fully comply with the Company's Worldwide Code of Legal and Ethical Business Conduct as in effect from time to time, or any successor or similar Code. The Executive shall devote substantially
all his working time and efforts to the business and affairs of the Company and shall use his best efforts to carry out his responsibilities faithfully and efficiently in a professional and ethical
manner. Notwithstanding the foregoing, it is understood that during the Employment Period, subject to any conflict of interest policies of the Company and Section 9, the Executive may
(a) serve in any capacity with any civic, charitable, educational or professional organization provided that such service does not materially interfere with his duties and responsibilities to
the Company, (b) make and manage personal investments of his choice, and (c) with the prior consent of the Company's President and Chief Executive Officer, which shall not be
unreasonably withheld, serve on the board of directors of one (1) for-profit business enterprise. The Executive may serve from time to time as a director and /or member of a
committee of the Company and/or as a director and/or member of a committee and/or officer of one or more subsidiaries or related or affiliated companies or joint ventures of the Company. The Executive
agrees to fulfill his duties as such director, member of committee or officer without additional compensation other than the compensation provided for in this Agreement.

4.Place of Performance.    During the Employment Period, the Executive's place of
performance of his services shall be at the Company'sAmes, Iowaoffices, except for required travel by the Executive on the Company's business or as
may be reasonably required by the Company.

5.Compensation and Benefits.



---



6.Termination of Employment.



2

---



3

---



4

---



7.Change in Control.





5

---







6

---



8.Indemnification.    In addition to any rights to indemnification to which the
Executive is entitled under the Company's Restated Certificate of Incorporation or Bylaws, agreement with the Company, vote of stockholders or disinterested directors or otherwise, the Company shall
indemnify the Executive at all
times during and after the Employment Period to the maximum extent permitted under the Delaware Business Corporation Act or any successor provision thereof, and any and all applicable state law of the
State of Delaware, and shall pay the Executive's expenses (including reasonable attorneys' fees and expenses, which shall be paid in advance by the Company as incurred, subject to recoupment in
accordance with applicable law) in defending any civil action, suit or proceeding in advance of the final disposition of such action, suit or proceeding to the maximum extent permitted under such
applicable state laws for the Executive's action or inaction on behalf of the Company under the terms of this Agreement. The provisions of this Section 8 shall survive the termination of the
Executive's employment or the termination of the other provisions of this Agreement.

9.Covenant Not to Compete.    Without the consent of the Company, the Executive shall
not, directly or indirectly, anywhere in the world, at any time during the Employment Period and for a period of eighteen (18) months following the termination of Executive's employment with
the Company for any reason, be associated or in any way connected as an owner, investor, partner, director, officer, employee, agent, or consultant with any business entity directly engaged in the
manufacture and/or sale of products competitive with any material product or product lines of the Company; provided, however, that the Executive shall not be deemed to have breached this undertaking
if his sole relation with such entity consists of his holding, directly or indirectly, an equity interest in such entity not greater than two percent (2%) of such entity's outstanding equity interest,
and the class of equity in which the Executive holds an interest is listed and traded on a broadly recognized national or regional securities exchange. For purposes hereof, the term "material product
or product line of the Company" shall mean any product or product line of the Company, the aggregate gross sales of which during any calendar year during the five (5) year period preceding the
Executive's undertaking such association with such a competitor were at least $10 million.

The
Executive acknowledges that: (a) the services to be performed by him under this Agreement are of a special, unique, unusual, extraordinary, and intellectual character;
(b) the business of the Company is worldwide in scope and its products are marketed throughout the world; (c) the Company competes with other businesses that are or could be located in
any part of the world; and (d) the provisions of this Section 9 are reasonable and necessary to protect the Company's business.

7

---

If
any covenant in this Section 9 is held to be unreasonable, arbitrary, or against public policy, such covenant will be considered to be divisible with respect to scope, time,
and geographic area, and such lesser scope, time, or geographic area, or all of them, as a court of competent jurisdiction may determine to be reasonable, not arbitrary, and not against public policy,
will be effective, binding, and enforceable against the Executive.

The
period of time applicable to any covenant in this Section 9 will be extended by the duration of any violation by the Executive of such covenant.

The
Executive will, while the covenants under this Section 9 are in effect, give notice to the Company, within ten days after accepting any other employment, of the identity of
the Executive's employer. The Company may notify such employer that the Executive is bound by this Agreement and, at the Company's election, furnish such employer with a copy of this Agreement or
relevant portions thereof.

10.Disclosure of Confidential Information.    Without the consent of the Company, the
Executive shall not disclose to any other person Confidential Information (as defined below) concerning the Company or the Company's trade secrets of which the Executive has gained knowledge during
his employment with the Company. Any trade secrets of the Company or any of its subsidiaries or related or affiliated companies or joint ventures will be entitled to all of the protections and
benefits under the Iowa Code Annotated Section 550.1 through 550.8 and any other applicable law. If any information that the Company deems to be a trade secret is found by a court of competent
jurisdiction not to be a trade secret for purposes of this Agreement, such information will, nevertheless, be considered Confidential Information for purposes of this Agreement. The Executive hereby
waives any requirement that the Company submit proof of the economic value of any trade secret or post a bond or other security. None of the foregoing obligations and restrictions apply to any part of
the Confidential Information that the Executive demonstrates was or became generally available to the public other than as a result of a disclosure by the Executive.

The
Executive will not remove from the premises of the Company (except to the extent such removal is for purposes of the performance of the Executive's duties at home or while traveling,
or except as otherwise specifically authorized by the Company), any document, record, notebook, plan, model, component, device, or computer software or code, whether embodied in a disk or in any other
form, that contains Confidential Information (collectively, the "Proprietary Items"). The Executive recognizes that, as between the Company and the Executive, all of the Proprietary Items, whether or
not developed by the Executive, are the exclusive property of the Company. Upon termination of this Agreement by either party, or upon the request of the Company during the Employment Period, the
Executive will return to the Company all of the Proprietary Items in the Executive's possession or subject to the Executive's control, and the Executive shall not retain any copies, abstracts,
sketches, or other physical embodiment of any of the Proprietary Items.

For
purposes of this Agreement, Confidential Information shall include any and all information concerning the business and affairs of the Company, including, without limitation, product
specifications, data, know-how, formulae, compositions, processes, designs, sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current, and planned research and
development, current and planned distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market studies, business plans, computer software and
programs (including object code and source code), computer software and database technologies, systems, structures, and architectures (and related formulae, compositions, processes, improvements,
devices, know-how, inventions, discoveries, concepts, ideas, designs, methods and information), historical financial statements, financial projections and budgets, historical and projected
sales, capital spending budgets and plans, the names and backgrounds of key personnel, agents, personnel training and techniques and materials, insurance products, premium structures, information
relating to suppliers and supplies, sales and marketing information and strategy, notes, analysis, compilations, studies, summaries, and other material prepared by or for the Company

8

---

containing
or based, in whole or in part, on any information included in the foregoing, and any information, however documented, that is a trade secret within the meaning of the Iowa Code Annotated
Section 550.1 through 550.8.

11.Developments.    During the course of employment with the Company, Executive may
conceive enhancements to the products manufactured or sold by the Company or may conceive new products which perform functions similar to products manufactured or sold by the Company or may conceive
other new products related to the business of the Company or may develop ideas, plans and opportunities. Executive shall disclose promptly and fully to the Company any and all ideas, business
developments, plans and opportunities, new products or systems, inventions, discoveries, enhancements and improvements ("Developments"), whether or not patentable or subject to copyrights, conceived
or made by Executive during the Employment Period, during work hours or otherwise and on the Company's premises or otherwise. Employee recognizes that pursuant to this arrangement that the Company may
develop a new product that generates widespread market appeal.

Executive
agrees that all Developments shall be the sole property of the Company, and Executive hereby assigns to the Company, without further compensation, all of his right, title, and
interest in and to such Developments and any and all related patents, patent applications, copyrights, copyright applications, trademarks, and trade names in the United States and elsewhere. Executive
shall assist the Company in obtaining and enforcing patent, copyright, and any other forms of legal protection for the Developments in any country. Upon request, Executive will sign all applications,
assignments, instruments and papers to perform all acts necessary or desired by the Company to assign all such Developments completely to the Company and to enable the Company, its successors, assigns
and nominees, to secure and enjoy the full and exclusive benefits and advantages thereof. Executive will not, at any time, either during the term of this Agreement or thereafter, disclose to others,
or use for his own benefit or the benefit of others, any of the Developments. Executive agrees that the enhancement and development of all Developments capable of copyright protection is "Work For
Hire" within the meaning of the Copyright Act of 1976. These obligations shall continue beyond the Termination Date with respect to Developments, whether patentable or not, conceived or made by
Executive during his employment with the Company, and shall be binding upon Executive's assigns, personal representatives, administrators and other legal representatives.

12.Nonsolicitation.    Without the written consent of the Company, the Executive
shall not at any time during the Term and for a period of eighteen (18) months following the termination of Executive's employment with the Company for any reason (a) employ or retain or
arrange to have any other person, firm, or other entity employ or retain or otherwise participate in the employment or retention of any person who is an employee or consultant of the Company; or
(b) solicit or arrange to have any other person, firm, or other entity solicit or otherwise participate in the solicitation of business from any entity that was a customer of the Company at any
time during the Employment Period, whether or not the Executive had personal contact with such customer.

13.Injunctive Relief and Additional Remedy; Essential and Independent Covenants.



9

---



14.Severability.    It is the desire and intent of the parties that this Agreement
shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision or portion
of this Agreement shall be adjudicated to be invalid or unenforceable, this Agreement shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable, such
deletion to apply only with
respect to the operation of such provision in the particular jurisdiction in which such adjudication is made.

15.Withholding.    Any other provision of this Agreement notwithstanding, the Company
may withhold from amounts payable under this Agreement (a) all federal, state, local and foreign taxes and social security taxes that are required to be withheld by applicable laws or
regulations as the Company shall determine in its sole discretion, and (b) other ordinary and customary payroll deductions.

16.Notices.    All notices, requests, consents and other communications provided for
in this Agreement shall be in writing and shall be given by hand delivery or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If
to the Company:



If
to the Executive, to his residence address set forth on the records of the Company, or to such other address as either party furnishes to the other in writing in accordance with this
Section 16. All such notices shall be effective when actually received by the addressee.

17.Governing Law.    This Agreement shall be governed by and construed and enforced
in accordance with the laws of the State of Delaware, without regard to its conflicts of laws provisions, except to the extent that the laws of the State of Iowa are made applicable for purposes of
Section 10 of this Agreement.

18.Assignment.    Neither this Agreement nor any rights or duties hereunder may be
assigned by the Executive without the prior written consent of the Company. The Company shall have the right at any time to assign this Agreement to its successors and assigns;
provided, however, that the assignee or transferee is the successor to all or substantially all of the business and assets of the Company and
such assignee or transferee expressly assumes all of the obligations, duties and liabilities of the Company specified in this Agreement.

19.Amendments.    Any alterations or amendments to this Agreement shall only be in
writing and signed by each party to this Agreement.

20.Binding Effect.    Except as otherwise provided, this Agreement shall be binding
upon and shall inure to the benefit of the parties and their respective legal representatives, heirs, successors and assigns.

10

---

21.Execution in Counterparts.    This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constituted one and the same instrument.

22.Arbitration.    Any dispute, controversy or question arising under, out of, or
relating to this Agreement (or the breach thereof), or, the Executive's employment with the Company or termination thereof, other than those disputes relating to Executive's alleged violations of
Sections 9, 10, 11 and 12 of this Agreement, shall be referred for binding arbitration in Des Moines, Iowa to a neutral arbitrator selected by the Executive and the Company and this shall be the
exclusive and sole means for resolving such dispute. Such arbitration shall be conducted in accordance with the National Rules for Resolution of Employment Disputes of the American Arbitration
Association. The arbitrator shall have the discretion to award reasonable attorneys' fees, costs and expenses to the prevailing party. Judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction thereof. This Section 22 does not apply to any action by the Company to enforce Sections 9, 10, 11 and 12 of this Agreement and does not in any way restrict the
Company's rights under Section 13 of this Agreement.

23.Entire Agreement.    This Agreement sets forth the entire agreement and
understanding of the parties and supersedes all prior understandings, agreements or representations by or between the parties, whether written or oral, which relate in any way to the subject matter
hereof, except as expressly provided in Section 8 regarding indemnification agreements. Without limiting the generality of the foregoing, all existing employment agreements, change in control
agreements and patent and confidential information agreements are hereby terminated and of no further force or effect.

24.Survivorship.    The provisions of this Agreement necessary to carry out the
intention of the parties as expressed herein shall survive the termination or expiration of this Agreement, including, without limitation, Sections 8, 9, 10, 11, 12 and 13.

25.Waiver.    Except as provided herein, the waiver by either party of the other
party's prompt and complete performance, or breach or violation, of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation, and the
failure by any party hereto to exercise any right or remedy which it may possess hereunder shall not operate nor be construed as a
bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent breach or violation.

26.Captions.    The captions of this Agreement are for convenience and reference only
and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof.

27.Construction.    The parties acknowledge that this Agreement is the result of
arm's-length negotiations between sophisticated parties each afforded representation by legal counsel. Each and every provision of this Agreement shall be construed as though both parties participated
equally in the drafting of same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement.

11

---

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

| |  | EXECUTIVE         
| |  | ------------------
| |  | By:               
| |  | SAUER-DANFOSS INC.
| |  | By:               

12

---

QuickLinks