Document:

exv10w1

 

Exhibit 10.1

Officer

Incentive Compensation Plan

Effective October 1, 2003

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KULICKE & SOFFA INDUSTRIES, INC.

OFFICER INCENTIVE COMPENSATION PLAN

	A.	 	Purpose

The purpose of the Kulicke & Soffa Industries, Inc. (K&S) Officer Incentive
Compensation Plan is to:

	•	 	Motivate Participants to achieve financial, business, and individual
results consistent with the Company’s business strategy; and,
	 
	•	 	Provide Plan Participants with the opportunity to earn a portion of
their total compensation based on the financial results of the Company
and their individual efforts.

	B.	 	Effective Date

This Plan is effective October 1, 2003. This Plan and its attachments
constitute the entire Officer Incentive Compensation Plan and supersede any
other oral or written agreements. The Plan will be administered on a Fiscal
Half-Year basis.

	C.	 	Amendment and Termination

The Board of Directors may, at any time and without prior notice to
Participants, terminate the Plan or amend it in such respects as the Board, in
its discretion, deems to be in the best interest of the Company. In the event
of Plan termination, the Board of Directors shall determine, in its sole
discretion, whether no Awards, partial Awards, or full Awards shall be made
with respect to the Fiscal Half-Year in which the termination occurs.

	D.	 	Plan Administration

This Plan shall be operated and administered by the Compensation Committee of
the Board of Directors. Decisions by the Compensation Committee on all matters
involving the interpretation and administration of this Plan shall be final and
binding.

	E.	 	Eligibility and Participation

Only employees who are Officers of the Company are eligible to participate in
the Plan.

An employee shall participate with respect to a Fiscal Half-Year if he is an
Officer on the first day of such Fiscal Half-Year or becomes an Officer during
the Fiscal Half-Year.

Participants in this Plan will not be eligible to participate concurrently in
any other Company bonus or incentive program, including Success Share and Sales
Incentive Plans.

Inclusion in this Plan does not constitute a guarantee of employment or
specific earnings. Nothing in this Plan shall act as an express or implied
contract, a guarantee or commitment for an employee to be or to continue to be
a Participant in the Plan, to receive payments under the Plan, or to be
retained in the employment of Kulicke & Soffa Industries, Inc.

	F.	 	Overall Plan Components

The Plan is based on Corporate and Individual Performance Goals with Incentive
Awards made as a percentage of the Incentive Target as set forth below:

	 	1.	 	Corporate (K&S company-wide) Performance Goals: These goals
consist of the financial objective or objectives to be achieved on a
Company-wide basis as established by the Compensation Committee at

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	 	 	 	the beginning of the Fiscal Half-Year. A more detailed definition of
financial criteria will be provided in the specific information that
is prepared for each Participant. The Finance Department is the
official source to provide the K&S Corporate financial results for the
Fiscal Half-Year used to calculate Incentive Awards under this Plan.
	 
	 	2.	 	Individual Performance Goals: These are specific qualitative
or quantitative goals established for an individual Participant.
These will be developed by the Participant and the person to whom he
or she reports, subject to approval by the Compensation Committee.
Objectives may be established that encompass the full Plan Year or
longer, with milestones established for each Fiscal Half-Year that
can be measured and evaluated for Incentive Award purposes.
	 
	 	3.	 	Modification of Goals. Organizational changes or other
business events during the Fiscal Half-Year may require an
adjustment of the Performance Goals.
	 
	 	4.	 	Incentive Target: This is the amount to be paid when 100% of
all Goals are met. The Incentive Target, prior to any pro-rating
(as provided in Section I), will be based on the individual’s grade
level in the Company and other factors that influence the Total
Targeted Compensation level. The Incentive Target shall be weighted
with respect to Corporate and Individual Performance Goals as set
forth below:

	 	 	The Incentive Target is allocated as follows:

	 	 	 	 	 	 	 	 	 
	Salary	 	 	 	 	 	Individual
	Grade	 	Corporate Goals	 	Goals
	
	 	
	 	

	20
	 	 	100	%	 	 	 	 
	18/19
	 	 	90	%	 	 	10	%
	16/17
	 	 	80	%	 	 	20	%

	 	 	The weighting with respect to Corporate Goals may be further subdivided
if the Corporate Performance Goals are based on multiple financial
objectives or metrics. The Committee will determine the weighting for
each objective or metric. The Compensation Committee may, in its
discretion, adjust the allocation of the Incentive Target by adjusting
the percentages set forth above with respect to Corporate Goals and
Individual Goals with respect to any Participant, provided that the sum
of such adjusted percentages equals 100%.

	 	5.	 	Incentive Awards: Payment of all Incentive Awards will be
made within 90 days after financial statements become available for
the Plan’s Fiscal Half-Year.

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	G.	 	Definitions

This list is intended to provide definitions for most business terms used in
this Plan Document, but may not be all inclusive of terms used.

Award or Incentive Award - the incentive payment made to a Participant under
this Plan which is based on the achievement of Performance Goals and the
Participant’s Incentive Target.

Base Salary - the annualized rate of base compensation paid to a Participant at
the beginning of the Fiscal Half-Year or, if an employee becomes a Participant
subsequent to the first day of the Fiscal Half-Year, his or her annualized rate
of base compensation at the time of eligibility.

Board of Directors - the Board of Directors of K&S Industries Inc.

Breakeven - the Company has attained a Net Profit of greater than $0 for the
Fiscal Half-Year.

Compensation Committee - the Compensation Committee of the Board of Directors.

Company – Kulicke & Soffa Industries, Inc. and any successor thereto.

Corporate Performance Goals – goals that reflect financial results expected on
a Company-wide basis for the Fiscal Half-Year.

Fiscal Year - the business year, October 1 through September 30. The first
Fiscal Half-Year ends on March 31.

Goal or Target – the desired level of performance to be achieved on a Corporate
or Individual level. Above Target denotes performance above the designated
Target level.

Incentive Target - the percentage of a Participant’s Base Salary established as
the basis for his or her Incentive Award when 100% of all Goals are achieved.
The actual Incentive Award, if any, may equal, exceed, or fall below the
Incentive Target.

Individual Performance Goals - goals that reflect results expected from the
Participant during the Fiscal Half-Year.

Net Profit  - the net income as reported in SEC filings (which amount has been
determined after taking into account all incentive compensation to be paid
under this Plan or other plans of the Company with respect to the Fiscal
Half-Year) adjusted for

	•	 	Asset impairment of goodwill or intangibles
	 
	•	 	Current effect of an accounting change
	 
	•	 	Unanticipated required accounting entries (such as expensing stock options)

Officer - an employee who has been designated by the Board of Directors as an
Officer of the Company.

Participant - an Officer of the Company to whom participation has been extended
under the Plan.

Plan - the Kulicke & Soffa Industries Inc. Officer Incentive Compensation Plan.

Plan Year - the Fiscal Year of the Company which begins on October 1 and ends
on the following September 30.

Salary Grade – the grade level for each position established by the Company and
applied on a worldwide basis to all positions.

Threshold – performance at the minimum level specified for achievement of
Corporate or Individual Performance Goals. Performance below this level will
result in an Incentive Award of zero.

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Total Targeted Compensation - the total cash compensation opportunity for a
Participant. Total Targeted Compensation is comprised of Base Salary and an
incentive percentage. The total of these components is intended to be
competitive with the Total Targeted Compensation of similar positions based on
salary survey data for that country and employment market.

Weighted Incentive Target - for a particular Goal or financial metric, the
product obtained by multiplying an individual’s Incentive Target by the Weight
given to that Goal or financial metric.

	H.	 	Performance and Payment Levels

Threshold and Above Target for Corporate and Individual Performance Goals shall
be as defined below.

	•	 	Threshold performance for Corporate Performance Goals is 85% of Target.
	 
	•	 	Threshold for Individual Performance Goals is Breakeven, i.e.; Breakeven must be achieved in order for Incentive Awards for
Individual Performance Goals to be paid.
	 
	•	 	Above Target performance for Corporate Performance Goals will be awarded for achievement above 100% up to 150% of Target.
At 150% of Target, a maximum award of 120% of the Weighted Incentive Target can be achieved.
	 
	•	 	If the actual performance level falls between Threshold and Target performance, or Target and Above Target performance, the
result will be calculated through straight-line interpolation. See page 4.
	 
	•	 	If the measured performance levels at the close of the Fiscal Half-Year do not meet Threshold levels, no Incentive Awards
will be earned.

The Compensation Committee may, in its discretion, increase the amount of the
Incentive Awards otherwise payable to some or all Participants if performance
warrants; provided, however, that any such increases shall be subject to
approval by the Board of Directors if so required by any applicable laws or
rules or regulations.

	I.	 	Change in Employment Status and Eligibility for Award

A Plan Participant who is not an active regular full-time employee and an
Officer of the Company throughout the Fiscal Half-Year, including the last day
of the Fiscal Half-Year, is not entitled to an Award under the Plan except as
otherwise provided below.

In the event of termination of employment due to retirement, death or permanent
disability during the Fiscal Half-Year or of an absence of greater than twelve
(12) work weeks during an approved leave:

	•	 	A Plan Participant may be eligible to receive a prorated Incentive
Award for the Individual Performance Goals component only. The
Participant is not eligible for payment with respect to Corporate
Performance Goals.
	 
	•	 	The proration is based on the Individual Performance Goals actually
achieved by the Participant during the relevant Fiscal Half-Year as
measured by the person to whom the Participant reports, subject to
approval by the Compensation Committee.

In the event of an involuntary termination such as a reduction in force, a Plan
Participant may be eligible to receive a prorated Incentive Award for the
Individual Performance Goals component only based on the Individual Performance
Goals actually achieved by the Participant during the relevant Fiscal Half-Year
as measured by the person to whom the Participant reports, subject to approval
by the Compensation Committee. The Participant is not eligible for payment
with respect to Corporate Performance Goals.

An employee who becomes a Participant subsequent to the beginning of a Fiscal
Half-Year, an employee who becomes ineligible during the Fiscal Half-Year but
continues to be employed by the Company, and a Participant who is absent for
fewer than twelve (12) work weeks on an approved leave during the Fiscal
Half-Year may be eligible for a prorated Incentive Award for both Corporate and
Individual Performance Goals. An Award with respect to Individual Performance
Goals shall be prorated based on the Individual Performance Goals actually

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achieved by the Participant during the relevant Fiscal Half-Year as measured by
the person to whom the Participant reports, subject to approval by the
Compensation Committee. An Award with respect to Corporate Performance Goals
shall be prorated based on the period of time the Participant was an active
full-time employee and an Officer during the Fiscal Half-Year. Notwithstanding
the foregoing, an employee whose participation in the Incentive Compensation
Plan ceases during a Fiscal Half-Year as a result of becoming an Officer
subsequent to the first day of such Fiscal Half-Year shall be eligible to
receive an Award hereunder with respect to the full Fiscal Half-Year. The
Compensation Committee, in its discretion, may make such adjustments as it
deems necessary in order to take into account performance goals under the
Incentive Compensation Plan prior to the date such employee became an Officer.

In all cases eligibility for a prorated Award is contingent on meeting all
other conditions and requirements of the Plan.

Prorating will be calculated in monthly increments. Changes occurring during
the first 15 days of the month will be prorated back to the beginning of the
month; changes occurring from the 16th day of the month will be prorated based
on the 1st of the following month.

Plan Participants whose employment with the Company is terminated for cause or
due to a voluntary resignation prior to the end of the Fiscal Half-Year will
not be eligible for either a full or prorated Incentive Award.

	J.	 	General Provisions

All Incentive Awards shall be subject to tax and withholding under applicable
Country laws and regulations in effect at the time.

All Incentive Awards will be paid in local Country currency.

Participants may not sell, assign, transfer, pledge or encumber any expectation
of or right to an Award under this Plan and any attempt to do so shall be void.

As a condition of receiving benefits under the Plan, all Participants agree to
respect the confidentiality of the Company’s financial information.

This Plan will be construed in accordance with and governed by the laws of The
Commonwealth of Pennsylvania, without reference to principles of conflicts of
law, as to all matters, including, but not limited to, matters of validity,
construction and performance.

Dispute Resolution

The Compensation Committee shall have complete discretion concerning the
determination of Incentive Awards under the Plan and the decision of the
Compensation Committee shall be final and conclusive. Any disputes regarding
incentive eligibility or an Award with respect to a Fiscal Half-Year must be
communicated in writing to the Compensation Committee within ninety (90) days
from the date an Incentive Award would otherwise have been paid with respect to
such Fiscal Half-Year.

43RULE 10B5-1 TRADING PLAN

         This Trading Plan dated February 12, 2004 (the "Trading Plan") is
entered into between HANSON CAPITAL PARTNERS, LLC ("Seller") and BESSEMER TRUST
COMPANY OF FLORIDA ("Bessemer"), acting as agent, for the purpose of
establishing a trading plan that complies with Rule 10b5-1(c)(1) under the
Securities Exchange Act of 1934, as amended (the "Exchange Act").

         WHEREAS, Seller has opened investment management account no. 9D3Q13
with Bessemer, which account holds, among other assets, common stock, par value
$0.50 per share (the "Stock"), of WINNEBAGO INDUSTRIES, INC. ("Issuer"); and

         WHEREAS, Seller desires that Bessemer be granted the authority, under
certain circumstances more particularly described in the Trading Plan, to sell
the Stock, and Bessemer desires to exercise such authority.

         NOW THEREFORE, in consideration of the promises and obligations of
Seller and Bessemer hereunder, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Seller and
Bessemer agree as follows:

         1. SPECIFIC PLAN OF SALE. Bessemer agrees to effect sales of Stock on
behalf of Seller in accordance with the specific instructions set forth in
Exhibit A (the "Sales Instructions").

         2. FEES/COMMISSIONS. Seller shall pay Bessemer its customary brokerage
and other fees in connection with the sales of the Stock, such amounts to be
deducted by Bessemer from the proceeds of sales under this Trading Plan.

         3. SELLER'S REPRESENTATIONS AND WARRANTIES. As of the date hereof,
Seller represents and warrants that:

                  (a) Seller is not aware of any material nonpublic information
         concerning Issuer or any securities of Issuer;

                  (b) Seller is entering into this Trading Plan in good faith
         and not as part of a plan or scheme to evade the prohibitions of Rule
         10b5-1;

                  (c) Seller is not subject to any legal, regulatory or
         contractual restriction or undertaking that would prevent Bessemer from
         conducting sales in accordance with this Trading Plan;

                  (d) This Trading Plan is consistent with Issuer's insider
         trading policy;

                  (e) Seller has informed Issuer of this Trading Plan, has
         furnished Issuer with a copy of this Trading Plan and has been informed
         by Issuer that this Trading Plan is consistent with the Issuer's
         insider trading policy;

                                      -1-
<PAGE>

                  (f) Seller is not currently party to, and within the 60 days
         preceding the date hereof, has not been party to, an agreement with
         another Financial Institution entered into for the purpose of
         establishing a trading plan that complies with Rule 10b5-1;

                  (g) the Stock to be sold under this Trading Plan is owned free
         and clear by Seller and is not subject to any liens, security interests
         or other encumbrances or limitations on dispositions;

                  (h) to the extent that any Stock is eligible for sale under
         Rule 144 or Rule 145 under the Securities Act of 1933, as amended (the
         "Securities Act"), that Stock is not subject to any liens, security
         interests or other encumbrances or limitations on disposition, other
         than those imposed by Rule 144 or Rule 145; and

                  (i) Seller has had an opportunity to consult with Seller's own
         advisors as to the legal (including this Trading Plan's compliance with
         Rule 10b5-1 and applicable state law), tax, business, financial,
         accounting and related aspects of this Trading Plan, including
         potential application of Section 16(b) of the Exchange Act to any
         transaction (whether or not under this Trading Plan) engaged in by
         Seller or on Seller's behalf. Seller has not relied upon Bessemer or
         any person affiliated with Bessemer in connection with Seller's
         adoption or implementation of this Trading Plan, and Seller
         acknowledges that Seller has not received or relied on any
         representations from Bessemer concerning this Trading Plan's compliance
         with Rule 10b5-1.

         4. AGREEMENTS BY SELLER.

         (a) INVESTMENT MANAGEMENT ACCOUNT. Seller agrees that it will maintain
Bessemer investment management account no. 9D3Q13 during the effectiveness of
this Trading Plan and agrees to comply with the terms and conditions of the
Investment Management Agreement under which the account was established.

         (b) DELIVERY OF STOCK.

         (i) Seller agrees to execute such documents as are necessary to cause
         the delivery of all shares of Stock to be sold pursuant to this Trading
         Plan (with the amount to be agreed upon by Seller and Bessemer, if the
         Sale Amount is designated as an aggregate dollar amount) (the "Plan
         Shares") into an account at Bessemer in the name of and for the benefit
         of Seller (the "Plan Account") prior to the commencement of any sales
         under this Trading Plan. Upon notification from Bessemer, if any, that
         the number of shares of Stock in the Plan Account is less than the
         number of Plan Shares that Bessemer estimates remain to be sold
         pursuant to this Trading Plan, Seller agrees to execute such documents
         that are necessary to cause the delivery promptly to the Plan Account
         of the number of shares of Stock specified by Bessemer as necessary to
         eliminate this shortfall.

         (ii) Seller agrees that its failure to make effective delivery of
         shares of Stock shall relieve Bessemer of its obligations under this
         Trading Plan.

                                      -2-
<PAGE>

         (c) HEDGING TRANSACTIONS. While this Trading Plan is in effect, Seller
agrees to comply with the prohibition set forth in Rule 10b5-1(c)(1)(C) against
entering into or altering a corresponding or hedging transaction or position
with respect to the Stock.

         (d) NOTICE TO BESSEMER. Seller agrees to notify Bessemer to terminate
sales, as appropriate, as soon as practicable upon the occurrence of any of the
events contemplated in paragraph 7(c).

         (e) COMMUNICATIONS. Seller agrees that it shall not, directly or
indirectly, communicate any material nonpublic information relating to the Stock
or Issuer to any employee of Bessemer.

         (f) CERTAIN REQUIRED EXCHANGE ACT FILINGS. Seller agrees to make all
filings, if any, required under Sections 13(d), 13(g) and 16 of the Exchange Act
in a timely manner, to the extent any such filings are applicable to Seller.

         (g) COMPLIANCE WITH APPLICABLE LAWS. Seller agrees to comply with all
applicable laws, including, without limitation, Section 16(a) of the Exchange
Act and the rules and regulations promulgated thereunder.

         (h) NO INFLUENCE. Seller acknowledges and agrees that Seller does not
have, and shall not attempt to exercise, any influence over how, when or whether
to effect sales of Stock pursuant to this Trading Plan following the execution
thereof.

         (i) STOCK NON-MARGINABLE. The Stock is not marginable and may not be
used by Seller as collateral for any purpose.

         (j) DISCRETION. Seller acknowledges and agrees that Bessemer and its
affiliates and any of their respective officers, employees or other
representatives shall exercise discretionary authority or discretionary control
in connection with effecting sales under this Trading Plan, subject to the Sales
Instructions under this Trading Plan and the express provisions of this Trading
Plan.

         (k) ACKNOWLEDGMENT OF RELIEF FROM OBLIGATION TO EFFECT SALES. Seller
acknowledges and agrees that Bessemer shall be relieved of its obligation to
sell Stock as otherwise required by paragraph 1 above at any time when:

         (i) Bessemer has determined that (A) a material adverse change in the
         financial markets, in the market activity in the stock of Issuer or in
         the internal systems of Bessemer or one of its affiliates, an outbreak
         or escalation of hostilities or other crisis or calamity has occurred
         (in each case, the effect of which is such as to make it, in the sole
         judgment of Bessemer, impracticable for Bessemer to sell Stock); or (B)
         a trading suspension with respect to the Stock by the Securities and
         Exchange Commission or the New York Stock Exchange ("NYSE"), a
         delisting of the Stock by the NYSE, or a banking moratorium has
         occurred;

                                      -3-
<PAGE>

         (ii) Bessemer determines, in its sole discretion, that it is prohibited
         from doing so by a legal, contractual or regulatory restriction
         applicable to it or its affiliates or to Seller or Seller's affiliates;
         or

         (iii) This Trading Plan is terminated in accordance with paragraph 7
         below.

         (l) Seller further acknowledges and agrees that if Bessemer cannot
         effect a sale as required by paragraph 1 above for any of the reasons
         set forth in paragraph 4(k) above, Bessemer shall effect such sale as
         promptly as practical after the cessation or termination of such cause,
         subject to the restrictions set forth in paragraph 1 of Exhibit A.

         5. PRO RATA ALLOCATION OF SALES. Seller agrees and acknowledges that
Bessemer shall allocate the proceeds of all Stock actually sold on a particular
day pursuant to all Rule 10b5-1 Trading Plans concerning Issuer's securities
that Bessemer manages (including this Trading Plan) pro rata among all such
Trading Plans, based on the ratio of (x) the Stock to be sold that day under
each such Trading Plan to (y) the sum of the proceeds of all Stock to be sold
that day under all such Trading Plans.

         6. RULE 144 AND RULE 145. With respect to sales of Stock subject to
Rule 144 or Rule 145, Seller and Bessemer agree to comply with the following
provisions.

         (a) Agreements by Seller Regarding Rule 144 and Rule 145.

         (i) Seller agrees not to take, and agrees to cause any person or entity
         with which Seller would be required to aggregate sales of Stock
         pursuant to Rule 144(a)(2) or (e) not to take, any action that would
         cause the sales hereunder not to meet all applicable requirements of
         Rule 144 or Rule 145.

         (ii) Seller agrees to complete, execute and deliver to Bessemer Forms
         144 for sales to be effected under the Trading Plan at such times and
         in such numbers as Bessemer shall request. Seller hereby grants
         Bessemer a power of attorney to complete and file on behalf of Seller
         any required Forms 144.

         (iii) Seller agrees to complete, execute and deliver to Bessemer Rule
         144 Letters (substantially in the form attached hereto as Exhibit C)
         for sales to be effected under the Trading Plan at such times and in
         such numbers as Bessemer shall request.

         (b) Agreements by Bessemer Regarding Rule 144, Rule 145 and Section 16.

         (i) Bessemer agrees to conduct all sales pursuant to the Trading Plan
         in accordance with the manner of sale requirement of Rule 144 and/or
         Rule 145. Bessemer shall not effect any sales that it knows would
         exceed the then-applicable volume limitation under Rule 144 or Rule
         145.

         (ii) Bessemer agrees to file such Forms 144 furnished by Seller
         pursuant to paragraph 6(a)(ii) above on behalf of Seller as required by
         applicable law.

                                      -4-
<PAGE>

         Bessemer shall make one Form 144 filing at the beginning of each
         three-month period, commencing upon the first Sale Day under the
         Trading Plan.

         (iii) Bessemer agrees to submit such Rule 144 Letters furnished by
         Seller pursuant to paragraph 6(a)(iii) above on behalf of Seller as
         required by Issuer's transfer agent.

         (iv) Bessemer agrees to notify the Issuer as soon as practicable
         following a sale of Stock under the Trading Plan, but in no event later
         than the first business day after such sale, so that the appropriate
         Section 16 filing can be made on Seller's behalf. Notice may be made
         via e-mail to Raymond M. Beebe (rbeebe@winnebagoind.com) (facsimile no.
         641-585-6806) and William M. Libit (libit@chapman.com) (facsimile no.
         312-516-3981) and must include the trade date, the number of shares
         sold and the sale price(s).

         7. EFFECTIVENESS AND TERMINATION. This Trading Plan is effective as of
the date first written above and will terminate on the earliest to occur of the
following (the "Plan Sales Period"):

         (a) on July 31, 2004;

         (b) the date that the aggregate number of shares of Stock sold pursuant
to this Trading Plan reaches the Plan Shares amount;

         (c) promptly after the date on which Bessemer receives notice from
Seller of the termination of this Trading Plan; PROVIDED, HOWEVER, that such
notice shall be accompanied by a certification from Seller that Seller has
notified Issuer in writing of such termination; or

         (d) upon the determination by Bessemer, or promptly after the
determination by Seller and notice to Bessemer (either of which determinations
must be reasonable), that this Trading Plan does not comply with Rule 10b5-1.

         8. INDEMNIFICATION; LIMITATION OF LIABILITY.

         (a) INDEMNIFICATION.

         (i) Seller agrees to indemnify and hold harmless Bessemer and its
         directors, officers, employees and affiliates from and against all
         claims, losses, damages and liabilities (including, without limitation,
         any legal or other expenses reasonably incurred in connection with
         defending or investigating any such action or claim) arising out of or
         attributable to Bessemer's actions taken or not taken in compliance
         with this Trading Plan, arising out of or attributable to any breach by
         Seller of this Trading Plan (including Seller's representations and
         warranties hereunder), and any violation by Seller of applicable laws
         or regulations. This indemnification shall survive termination of this
         Trading Plan.

                                      -5-
<PAGE>

         (ii) Bessemer agrees to indemnify and hold harmless Seller from and
         against all claims, losses, damages and liabilities (including, without
         limitation, any legal or other expenses reasonably incurred in
         connection with defending or investigating any such action or claim)
         arising out of or attributable to the gross negligence or willful
         misconduct of Bessemer in connection with this Trading Plan.

         (b) LIMITATION OF LIABILITY.

         (i) Notwithstanding any other provision hereof, Bessemer shall not be
         liable to Seller, and Seller shall not be liable to Bessemer, for: (A)
         special, indirect, punitive, exemplary or consequential damages, or
         incidental losses or damages of any kind, even if advised of the
         possibility of such losses or damages or if such losses or damages
         could have been reasonably foreseen; or (B) any failure to perform or
         to cease performance or any delay in performance that results from a
         cause or circumstance that is beyond its reasonable control, including,
         but not limited to, failure of electronic or mechanical equipment,
         strikes, failure of common carrier or utility systems, severe weather,
         market disruptions or other causes commonly known as "acts of God."

         (ii) Notwithstanding any other provision hereof, Bessemer shall not be
         liable to Seller for (A) the exercise of discretionary authority or
         discretionary control under this Trading Plan, if any, or (B) any
         failure to effect a sale required by paragraph 1, except for failures
         to effect sales as a result of the gross negligence or willful
         misconduct of Bessemer.

         9. AGREEMENT TO ARBITRATE. Any dispute between Seller and Bessemer
arising out of, relating to or in connection with this Trading Plan or any
transaction relating to this Trading Plan shall be determined only by
arbitration administered by Judicial Arbitration and Mediation Service in
accordance with its Comprehensive Arbitration Rules and Procedures.

         10. NOTICES.

         (a) All notices to Bessemer under this Trading Plan shall be provided
to Andrew Parker at Bessemer in the manner specified by this Trading Plan by
telephone at (212) 708-9304, by facsimile at (212) 265-5826 or by certified mail
to the address below:

                   Bessemer Trust Company of Florida
                   222 Royal Palm Way
                   Palm Beach, Florida  33480

                                      -6-
<PAGE>

         (b) All notices to Seller under this Trading Plan shall be given to
John V. Hanson on behalf of Hanson Capital Partners, LLC in the manner specified
by this Trading Plan by telephone at 772-225-9095, by facsimile at 772-225-5431
or by certified mail to the address below:

                   Hanson Capital Partners, L.L.C.
                   c/o John V. Hanson
                   7019 S.E. Harbor Circle
                   Stuart, FL  34996-1023

         11. AMENDMENTS AND MODIFICATIONS. This Trading Plan may be amended by
Seller only upon the written consent of Bessemer and receipt by Bessemer of the
following documents, each dated as of the date of such amendment:

         (a) a certificate signed by Seller, certifying that the representations
and warranties of Seller contained in this Trading Plan are true at and as of
the date of such certificate as if made at and as of such date; and

         (b) an issuer certificate completed by Issuer substantially in the form
of Exhibit B hereto.

         12. ASSIGNMENT. Seller's rights and obligations under this Trading Plan
may not be assigned or delegated without the written permission of Bessemer.

         13. INCONSISTENCY WITH LAW. If any provision of this Trading Plan is or
becomes inconsistent with any applicable present or future law, rule or
regulation, that provision will be deemed modified or, if necessary, rescinded
in order to comply with the relevant law, rule or regulation. All other
provisions of this Trading Plan will continue and remain in full force and
effect.

         14. GOVERNING LAW. This Trading Plan shall be governed by and construed
in accordance with the internal laws of the State of New York and may be
modified or amended only by a writing signed by the parties hereto.

         15. ENTIRE AGREEMENT. This Trading Plan, including Exhibits, and the
Investment Management Agreement referred to in paragraph 4(a) above, constitute
the entire agreement between the parties with respect to this Trading Plan and
supercede any prior agreements or understandings with regard to this Trading
Plan.

                                      -7-
<PAGE>

         16. COUNTERPARTS. This Trading Plan may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

         NOTICE: THIS AGREEMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE IN
PARAGRAPH 9.

         IN WITNESS WHEREOF, the undersigned have signed this Trading Plan as of
the date first written above.

                                        HANSON CAPITAL PARTNERS, LLC

                                        By: /s/ Mary Joan Boman
                                            -----------------------------------
                                            Mary Joan Boman

                                        By: /s/ John V. Hanson
                                            -----------------------------------
                                            John V. Hanson

                                        By: /s/ Paul D. Hanson
                                            -----------------------------------
                                            Paul D. Hanson

                                        BESSEMER TRUST COMPANY OF FLORIDA

                                        By: /s/ Jo Ann Engelhardt
                                            -----------------------------------
                                            Name:  Jo Ann Engelhardt
                                            Title: Managing Director

                                      -8-
<PAGE>

                                    EXHIBIT A

 THIS EXHIBIT A MAY NOT BE AMENDED EXCEPT IN ACCORDANCE WITH THE TRADING PLAN.

                              SPECIFIC INSTRUCTIONS

1.       Bessemer shall enter a Sell Order for such number of shares of stock
         ("Sale Amount") for the account of Seller on each specified Sale Day
         (as defined below) at the specified Sale Price (as defined below) as
         Bessemer shall in its discretion determine, subject to the following
         restriction: In no event shall Bessemer sell any shares of Stock
         pursuant to the Trading Plan prior to two Trading Days after the date
         of this Trading Plan.

2.       A "Sale Day" shall be any day during the Plan Sales Period that the
         limit price specified in Paragraph 4 below is met; PROVIDED, HOWEVER,
         that if any Sale Day is not a Trading Day, such Sale Day shall be
         deemed to fall on the next succeeding Trading Day within the Plan Sales
         Period.

3.       Bessemer shall effect sales of a maximum of 1,250,000 shares of Stock
         under the Trading Plan. Subject to the foregoing limitation and the
         minimum Sale Price set forth below, Bessemer shall have full discretion
         to effect sales of the Stock.

4.       The "Sale Price" shall be the market price per share of Stock on the
         Sale Day, provided that such market price is not less than $60.00 per
         share.

5.       The maximum number of shares of Stock that may be sold under paragraph
         3 and the Sale Price shall be adjusted automatically on a proportionate
         basis to take into account any stock split, reverse stock split or
         stock dividend with respect to the Stock or any change in
         capitalization with respect to Issuer that occurs while the Trading
         Plan is in effect.

6.       The term "Stock" as used in the Trading Plan shall include any class or
         series of common stock of Issuer into which the Stock shall be
         converted whether pursuant to a reclassification, reorganization,
         reincorporation or similar event.

7.       A "Trading Day" is any day during the Plan Sales Period that the NYSE
         (the "Principal U.S. Market") is open for business and the Stock trades
         in a regular way on the principal U.S. market; PROVIDED, HOWEVER, that
         a "Trading Day" shall mean only that day's regular trading session of
         the Principal U.S. Market and shall not include any extended-hours or
         after-hours trading sessions that the Principal U.S. Market may allow.

8.       Bessemer may sell Stock on any national securities exchange, in the
         over-the-counter market, on an automated trading system or otherwise.

9.       Bessemer may, in its sole discretion, elect to act as principal in
         executing sales under the Trading Plan.

                                      -1-
<PAGE>

                                    EXHIBIT B

                               ISSUER CERTIFICATE

1.       Winnebago Industries, Inc. ("Issuer") certifies that it has approved,
         and retained a copy of, the Trading Plan dated February 12, 2004 (the
         "Trading Plan") between Hanson Capital Partners, LLC ("Seller") and
         Bessemer Trust Company of Florida ("Bessemer") relating to the common
         stock, par value $0.50 per share, of Issuer (the "Stock").

2.       The Trading Plan is consistent with Issuer's insider trading policies,
         and, to the best of Issuer's knowledge, there are no legal, contractual
         or regulatory restrictions imposed by Issuer applicable to Seller or
         Seller's affiliates as of the date of this representation that would
         prohibit either Seller from entering into the Trading Plan or any sale
         pursuant to the Trading Plan.

3.       To avoid delays in connection with transfers of stock certificates and
         settlement of transactions under the Trading Plan, and in
         acknowledgment of Bessemer's agreement in paragraph 6(b) of the Trading
         Plan that sales of Stock under the Trading Plan will be effected in
         compliance with Rule 144, Issuer agrees that it will, immediately upon
         Seller's directing delivery of Stock into an account at Bessemer in the
         name of and for the benefit of Seller, instruct its transfer agent to
         process the transfer of shares and issue a new certificate to Seller
         that does not bear any legend or statement restricting its
         transferability to a buyer.

Dated: February 12, 2004

By: /s/ Raymond M. Beebe
    --------------------------
Name:   Raymond M. Beebe
Title:  Vice President, General Counsel
        and Secretary
        Winnebago Industries, Inc.

                                      -1-
<PAGE>

                                    EXHIBIT C

                                 RULE 144 LETTER

Date

[Broker to be used]

Ladies and Gentlemen:

      In connection with the proposed sale by me of _______ shares (the
"Shares") of common stock of ______________________ (the "Securities") through
[Broker] Inc. and pursuant to Rule 144 of the Securities Act of 1933, I hereby
represent to you that:

1.    I have not made and will not make, any payment in connection with the
execution of the above or to any persons other than [Broker] Inc.

2.    I have not solicited or arranged for the solicitation of and will not
solicit or arrange for the solicitation of orders to buy the Securities in
anticipation of or in connection with this transaction.

3.    During the three months prior to the date of this letter, a total of zero
(0) Shares of the Company have been sold by me and any person whose sales must
be aggregated with mine as provided in paragraphs (a) and (e) of Rule 144.

4.    At the time of the sale of the Shares which I have instructed [Broker]
Inc. to sell for my account, together with the Shares mentioned in paragraph 3
above, the aggregate amount of Shares sold during the preceding three (3) months
will not exceed the greater of (i) 1% of outstanding Securities as shown by the
most recent report or statement published by the Issuer or (ii) the average
weekly volume of trading in the Securities reported on all national securities
exchanges and/or reported through the automated quotation system of a registered
securities association during the four calendar weeks preceding the filing of
Form 144, or if no such Form 144 is required to be filed, the date of the
receipt of the order to execute the transaction by the broker or the date of
execution of the transaction directly with a market maker as defined in Section
39(a)(38) of the Securities Exchange Act of 1934, or (iii) the average weekly
volume of trading in the Securities reported through the consolidated
transaction reporting system contemplated by Rule 11Aa3-1 under the Securities
Exchange Act of 1934 during the four-week period specified in clause (ii) above.

5.    I warrant that I have beneficially owned these securities for a period of
at least one (1) year as computed in accordance with paragraph (d) of Rule 144.

6.    I am aware that payment of the proceeds of the sale is subject to the
Shares being transferred and delivered free of restriction into the name of
[Broker] Inc. and that transfer of the Shares may be delayed as the certificates
bear a restrictive legend.

                                      -1-
<PAGE>

7.    I herewith deliver to you an executed copy of Form 144, three executed
copies of which were transmitted to the Securities and Exchange Commission and
if the Securities are admitted to trading on any national securities exchange, I
will transmit one executed copy of such notice to the principal exchange on
which such securities are admitted to trading.

      I am familiar with Rule 144 under the Securities Act of 1933, as amended,
and agree that you may rely on the above statements in executing the order
referred to above.

                                                Very truly yours,

                                                -------------------------------
                                                [Name]

                                      -2-

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