Document:

exv10w26

Exhibit 10.26

INTERNATIONAL ASSIGNMENT

Letter of Understanding

January 13, 2010

Robert W. Peterson

             
               

    
            
            

Dear Bob,

This letter describes the general parameters and conditions of our offer to you for a temporary
international assignment with Piper Jaffray & Co. (“Piper Jaffray”).

The items in this letter agreement do not create a contract of employment, but simply seeks to
confirm the conditions that pertain to your international assignment and to provide a clear outline
of international assignment details, describing items such as compensation, benefits, start date
and an expected assignment completion date. Nothing in this letter shall be construed as a
limitation on the Piper Jaffray at-will employment policy.

To the extent applicable, this agreement shall be interpreted in accordance with Section 409A of
the Internal Revenue Code of 1986 (“Section 409A”) and Department of Treasury regulations and other
interpretive guidance issued thereunder, including without limitation any such regulations or
guidance that may be issued after the date of this letter.

In the event of any change in circumstances, or additional matters not known at this time, Piper
Jaffray reserves the right to make adjustments to this agreement. The agreement will be reviewed
on semi- annual basis and your assignment allowances may be adjusted accordingly based on changes
to your base salary, family status and currency fluxuations.

For the purposes of this letter, “Home Country” will mean the United States (“U.S.”) and “Host
Country” will mean United Kingdom (“UK”).

During your assignment, you will continue to be an employee under the terms and conditions of your
existing employment with Piper Jaffray.

Assignment Description

The following provisions will apply during your assignment in London, United Kingdom. You will
be employed as a Global Head of Equities, reporting to Tom Schnettler, (or his successor) as
President and Chief Operating Officer.

As Global Head of Equities, you will be responsible for:

	 	•	 	Leading equities resources globally

 

 

Robert W. Peterson

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	 	•	 	Accelerating the development of our equities businesses in Europe and Asia, leveraging
best practices across business units

	 
	 	•	 	Leveraging global distribution of equity research and cross-border trade execution
capabilities

	 
	 	•	 	Appointing, reviewing and compensating
U.S., European and Asian equities team heads

	 
	 	•	 	Setting goals/priorities for account coverage, industry coverage, productivity,
profitability and ROE

	 
	 	•	 	Allocating incentive compensation
resources

	 
	 	•	 	Developing and enhancing key
institutional investor client relationships

	 
	 	•	 	Collaborating with regional CEOs on the
above responsibilities

Your assignment will commence as of February 11, 2010. Minneapolis, Minnesota, United States of
America, (U.S.) will be considered as your point of origin, and the location to which we will
return you and your family upon final repatriation.

Your assignment is expected to have a maximum duration of 24 months. Piper Jaffray will endeavor to
give you reasonable advance notice of 60 days regarding the anticipated end of assignment.

For purposes of this assignment, your family unit will include yourself and:

	 	•	 	[                    ]
	 
	 	•	 	[                    ]
	 
	 	•	 	[                    ]

Compensation Overview

Base Salary

Your base salary in London will be USD $225,000 per year, or USD $9,375 per semi-monthly pay
period, less hypothetical tax and hypothetical housing charges, as defined later in this letter.
The equivalent annual salary based on currency as of January 12, 2010 will be £139,607.

Your future performance reviews and any salary increases will be determined by your home country
manager and will be administered according to your home country compensation policies and
guidelines.

Bonus/Incentive Compensation

You will continue to be included in your current incentive plan program during your assignment in
London, paid by Piper Jaffray & Co. (less required and authorized deductions), and paid in USD ($),
in the form of a cash bonus and equity award. The equity award may take the form of restricted
stock, stock options, or other stock-based award. All equity awards are subject to approval by the
CEO and/or the Compensation Committee of the Board of Directors of Piper Jaffray Companies and will
be subject to the terms and conditions of the applicable plan and the applicable award agreement.

Both the cash bonus and any equity award will be payable and/or made at such time that Piper
Jaffray pays its bonus compensation and makes its equity awards with respect to the calendar year
performance. Historically we have paid the cash bonus awards and equity awards granted by Piper
Jaffray by February 28th of the subsequent year, but in any event such awards will be paid not
later than March 15 following the performance year.

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Robert W. Peterson

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Registration Requirements

Your offered position requires you to be licensed and/or authorized by one or more appropriate
regulatory authorities. It is our expectation that you take all of the necessary means to
maintain your active status and meet the qualifications standards for all of the required
registrations for this position going forward. Compliance will discuss with you the necessary
licenses.

Proxy Statement Disclosure

During your assignment in London, you will receive additional amounts related to this assignment
that are required to be disclosed in the annual proxy statement of Piper Jaffray Companies. Piper
Jaffray will provide you a copy of this disclosure for your information prior to filing the annual
proxy statement with the Securities and Exchange Commission.

Benefits

During your assignment in London, you will remain on a home country-like benefit plan, designed for
expatriate assignments, offered by Blue Cross Blue Shield. You will be contacted regarding this
plan shortly. Your contributions to those plans will be deducted on a semi-monthly basis from your
U.S. paid compensation.

Pre-Departure and Relocation

Pre-Assignment Consultation

You should meet with Mimi Bekele from Human Resources to discuss your international assignment.
The orientation is designed to provide you with valuable information regarding your international
assignment, as well as give you an opportunity to address any unique circumstances that may exist
and require special handling. Such issues should be raised and addressed as early as possible to
ensure a timely resolution.

Tax Briefing

You are required to meet with a representative from KPMG, the Piper Jaffray-designated tax
consultant for an initial review of Piper Jaffray tax policies and practices before departure.
This tax consultation also provides you with an opportunity to understand the tax issues related to
your international assignment. Personal information is held in strict confidence and is not shared
with Piper Jaffray.

Homestead Exemption

Minnesota offers a “homestead exemption” which reduces the amount of real estate taxes due on a
taxpayer’s principal residence. In order to claim the homestead exemption, the taxpayer generally
must reside in the property and it must be used as the taxpayer’s principal residence. Claiming
the homestead exemption generally results in the taxpayer being considered a resident of the state
and therefore subject to state tax on worldwide income. This results in an additional tax burden
for the Company.

To minimize the Company’s exposure to state income tax, we request that you revoke the homestead
status. Further explanation will be provided by KPMG.

Medical Examination

It is suggested that you have a medical examination prior to your assignment in London. You should
also ask to be informed of necessary precautions and receive any required
vaccinations/inoculations. Piper Jaffray pays for the cost of the medical examination, if not
covered by insurance.

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Robert W. Peterson

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Travel and Immigration Documents

It is your responsibility to ensure that you and your family members have [a] passport[s] valid for
at least six months beyond the start date of your assignment.

You are responsible for coordinating with Nicole Godbe, from the Piper Jaffray General Counsel
department and Ula Harris, HR Manager as soon as possible to secure these documents, as obtaining
them may be a very lengthy process. Piper Jaffray pays for the cost of obtaining all necessary
travel, immigration documents, and host country work-permit matters related to this assignment for
you and your family members.

Will Preparation and Estate Planning

As the laws are different in every country, Piper Jaffray recommends that you either have your will
reviewed or that you prepare a will (if you have not already done so) before you start your
assignment. This helps to ensure that your wishes are carried out and the law of the host country
regarding the distribution of assets is not automatically implemented.

As estate and wealth tax laws vary in every country, Piper Jaffray highly recommends that you make
appropriate arrangements regarding your estate, reflecting those laws before you begin your
assignment.

Piper Jaffray does not provide a separate allowance for the review or writing of such documents.
However, you may use your relocation allowance, which is designed for costs not specifically
covered in this letter for this type of expense (see “Relocation Allowance”).

Pre-Assignment Trip

You and Jenny Peterson may make a preliminary visit to the host country for a maximum of 7 days.
The purpose of this trip is to find appropriate housing, visit schools (if applicable), and become
acquainted with the living environment in the assignment location. Travel arrangements and
reimbursements should be made according to the Piper Jaffray business travel policy in effect at
that time. Please contact Piper Travel Services to make the appropriate travel arrangements.

Shipment and Storage of Household Goods and Personal Effects

Shipment of Household Goods

Piper Jaffray will provide transportation of your household goods to London. Weichert Relocation
Services will coordinate the shipment of your household and personal effects to London. A Weichert
representative will contact you to make the necessary arrangements.

The Company will pay for shipping of personal belongings to London. Please understand that due to
space limitations of the shipping containers and other methods used, you may not be able to move
all of your personal belongings. Your allowance for shipping of personal and household goods is
$42,000
and may be subject to revision based on final move estimates from Weichert Relocation. Again, a
Weichert relocation counselor will walk through customary and acceptable items related to your
move.

Piper Jaffray protects the value of your shipment based on inventory. Piper Jaffray will not
replace high-value items such as securities, cash, art, heirlooms, precious jewelry, or other items
that are easily damaged or pilfered.

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Robert W. Peterson

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Shipment of Pets

Unfortunately, Piper Jaffray does not encourage the shipment of pets. Host Country laws, which
often include lengthy quarantine periods, make the transportation of pets into a foreign country
difficult at best. Piper Jaffray does not reimburse costs associated with the shipment of
pets. However, you may use your relocation allowance, which is designed for costs not specifically
covered in this letter for this type of expense.

Should you choose to ship pets to the assignment location, you are strongly encouraged to
familiarize yourself with the customs, quarantine restrictions, and requirements for bringing
animals into London. Again, Piper Jaffray will assume no responsibility regarding the shipment of
your pets.

Home-Country Property

Due to the temporary nature of international assignments, you are encouraged to review the issues
surrounding selling or renting your home while on international assignment. You should consider
future housing needs and the likelihood of returning to the same area; continued build up of equity
and potential housing market appreciation; risk of depreciation of property or neighborhood,
physical damage, excessive repair or maintenance expenses, proper management; lower or higher
interest rates upon return and the ability to assure equity investment yields sufficient to cover a
down payment upon repatriation; and tax consequences of a sale.

It is our understanding that you have decided to keep your home country residence while on
assignment. Piper Jaffray will pay for property management services for your residence and cabin
during the term of your assignment. Piper Jaffray will reimburse actual expenses related to
property management up to $5,000 per year.

Home-Country Vehicle Reimbursement

Upon providing lease termination documents, Piper Jaffray will reimburse you up to $6,000.

Post Office Box

You will receive reimbursement for post office box rental up to $176 per year.

Relocation Allowance

The relocation allowance is intended to compensate for a variety of individual miscellaneous
expenses, not specifically reimbursed or covered elsewhere in this letter. You will be provided
the following relocation allowances: $15,000 on January 15, 2010 and $15,000 upon completion of the
assignment.

Examples of the types of expenses that this allowance is designed to cover includes, but is not
limited to:

	n	 	Extra child care expenses while
supervising packing, locating a new home, etc.;

	 
	n	 	Alteration/installation of rugs and
draperies;

	 
	n	 	Installation and maintenance of
appliances;

	 
	n	 	Purchase of special clothing and small
appliances;

	 
	n	 	Expense of additional
housecleaning;

	 
	n	 	Cost of additional luggage;

	 
	n	 	Telephone installation charges;

	 
	n	 	Bank charges associated with opening new
accounts transferring funds, etc.;

	 
	n	 	Fees for deposits for connecting
services;

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	n	 	Licensing and registration costs of
automobiles, television sets, and radios, and costs of drivers’
licenses;

	 
	n	 	Household cleaning at housing
accommodations in both home and host countries;

	 
	n	 	Losses on club fees and dues;

	 
	n	 	Fees associated with the review or
drafting of a will;

	 
	n	 	Shipment of pets;

	 
	n	 	Pressing clothes; and

	 
	n	 	Electrical conversion equipment.

Travel to London

Air transportation will be provided for you and your family members when you travel from
Minneapolis to London at the beginning of your assignment. Class of travel will be business class.

In addition to the airfare, Piper Jaffray will pay for ground transportation to and from the
airport, as well as meals and other miscellaneous expenses based on Piper Jaffray business travel
policy.

During Your Assignment in London

Destination Services/Host-Country Orientation

You are entitled to services provided by Weichert Relocation Services in London to assist you and
your accompanying family members in settling into the new environment and culture. This typically
includes:

	n	 	School selection;
	 
	n	 	Home-finding assistance and lease negotiation;
	 
	n	 	Orientation for political, cultural, practical purposes;
	 
	n	 	Automobile rental/purchase;
	 
	n	 	Telephone and utility installation assistance;
	 
	n	 	Shopping recommendations;
	 
	n	 	Assistance with opening bank accounts, obtaining driver’s
licenses, local government paperwork, etc.; and
	 
	n	 	Health care and leisure activity guidance.

The services offered will vary by location and is usually provided during the pre-assignment trip
to the host country.

Leasing of Furnishings

Leasing of furnishings for rental home in London will be available until your shipments of
household goods arrive. You have two furnishing options to choose from, Traditional Package vs.
Contemporary Package. A Weichert representative will contact you to make the necessary
arrangements.

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Cost-of-Living Allowance / Goods and Services Differential

You will receive a goods and services differential payment in the amount of $35,335 per year, or
$2,944.58 per month, to offset the differences in the cost of living between the home and host
country locations. Generally, the purpose of the differential is to cover the excess cost of
personal expenditures in the host country. These costs include items such as food at home and away
from home, furnishings and household operations, clothing, medical and personal care, as well as
recreation.

The differential payment is subject to change, up or down, depending on the foreign exchange rate
and comparative prices in the two locations, based on the results measured by ORC. The
differential may be adjusted once every 12 months in accordance with the newly published ORC
indices and exchange rates. More frequent adjustments can be made at the discretion of Piper
Jaffray should significant geopolitical or other local circumstances warrant consideration.

The differential may also be adjusted if one or more of the following elements changes:

	n	 	Base salary;
	 
	n	 	Family size on assignment; or
	 
	n	 	Re-assignment to another location.

The differential payments commence on the combination of the date of transfer to the host country
and upon termination of temporary living expenses and continue throughout the assignment, including
periods of temporary absence from the host country such as business travel, home leave, and
vacations, and end on the day temporary living begins for repatriation.

Housing in London

Reasonable and customary accommodations will be sought for you and your accompanying family members
respective of your family size, location to work, availability of public transportation, community
resources, and of course, general safety of you and your family members.

There may be significant tax consequence associated with the purchase of housing in a host country.
Accordingly, purchasing of housing in the host country is strongly discouraged and if you
choose to purchase housing in the host country, please be advised that:

	n	 	No housing benefit (as described in this
section) will be provided;

	 
	n	 	No assistance will be provided for the
purchase, sale, or operation of such housing;

	 
	n	 	Any costs arising from such home ownership will be borne entirely by the you (including closing costs of
either purchase or sale);

	 
	n	 	The Company recognizes no responsibility for losses on such housing (whether those losses are a result of
market conditions, exchange rate fluctuations, taxes or any other
cause); and

	 
	n	 	Should the purchase of housing increase your tax liability in the host country, you will also be responsible
for this increased cost.

Home Country Housing Allowance

It is Piper Jaffray’s intent that you live in secure housing in London with consideration for your
salary, family size, availability, and other special needs, including dependent education
requirements.

During your assignment Piper Jaffray will pay a net monthly housing allowance not to exceed £13,000
to cover housing costs, including taxes for you and your family members. This amount is determined

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by reasonable housing expenses in London. In addition, Piper Jaffray will pay the security deposit
and any other one-time fees related to your housing.

In London, as long as you can prove that your actual expenses are at least £13,000 per month, this
allowance remains a non-taxable benefit to you. Piper Jaffray will make the payment directly to
your landlord. You will be required to provide the appropriate documentation, generally expected to
be a copy of your executed lease, as well as obtain the appropriate rental receipts as requested by
KPMG to satisfy any tax regulations related to housing allowances. Please provide the necessary
documentation on a timely basis as requested either by Piper Jaffray or KPMG.

This housing allowance will be determined at the onset of the assignment, reviewed annually, and
expected to remain the same for the duration of your assignment.

Council Tax Charge

You will receive reimbursement for cost of recycling and garbage related services up to $4,830 per
year.

Utilities Allowance

You will be reimbursed for the cost of utilities (gas, oil, electricity, water, but excluding
personal telephone and internet expenses) up to $583 per month.

Children’s Education Expenses

It is Piper Jaffray’s intent to minimize the disruption of the education of your children in the
host country. When the government-subsidized education system (kindergarten, elementary, or
secondary/high schools) in the host country do not offer adequate educational facilities, then
Piper Jaffray may authorize an educational allowance.

Piper Jaffray pays the allowance for a school that follows the home country or similar educational
system not provided through the host country government-subsidized schools.

Education Allowance

Approximately $16,000 per year allowance includes reimbursement of tuition costs, required fees,
books, necessary supplies, lab fees, school uniforms (if required), and necessary local
transportation for your two children in excess of the costs you had incurred in the home country
school. It must be understood that Piper Jaffray intends to pay only the extraordinary expenses
resulting from the assignment and does not reimburse expenses incurred beyond that (e.g., for
school activities, social events, sports, etc.).

Costs for special school programs, such as remedial reading or testing, which are normally provided
without charge in the home country school, may be reimbursed where required.

If an appropriate level of schooling is not available in the host country, Piper Jaffray may
reimburse the tuition and boarding costs in the home country with prior approval. If adequate
educational facilities are available at or within daily commuting distance of the city of
assignment, reimbursement will not exceed the expenses that would have been incurred had your
children attended an adequate local school in the assignment location.

Host Country Transportation

You will be provided with a public transportation subsidy in the amount of $140.25 per month. The
public transportation subsidy amount is determined using a Company-designated data provider and/or
local sources, and paid via the normal pay cycle.

Spousal Allowance

Piper Jaffray will provide reimbursement up to $5,200 per year to cover club membership fees.

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Taxes

While on assignment, you will be governed by the Piper Jaffray tax equalization philosophy. It is
the firm’s intent that differences in income tax expense due to your foreign assignment should not
result in a significant advantage or disadvantage to you. This philosophy behind tax equalization
is that you bear an income tax burden approximately equal to what your income tax would have been
had you remained employed in the U.S. during the assignment period. The Company-designated
representative will discuss this philosophy and its implications with you during your tax briefing
session (see “Tax Briefing” in the Pre-Departure and Relocation section). Tax equalization
payments made to you by Piper Jaffray will be made in compliance with Section 409A, as amended (or
any successor provision) and will be paid by the end of the calendar year following the year in
which your US tax return or tax payments are due, if not earlier.

Tax Preparation Assistance

It is Piper Jaffray policy that you comply fully with all applicable laws and regulations relating
to filing procedures and payment of taxes. Therefore, Piper Jaffray provides you with the services
of a company-designated tax consultant to assist in preparing home and host country tax returns for
the duration of the assignment and, if necessary, any additional years after repatriation to
recapture any tax credits carried forward. Tax returns will also be prepared on behalf of your
accompanying spouse/partner if separate returns are legally required.

You are responsible for complying with all requirements regarding personal tax filings and payments
to each taxing authority to which any such requirement exists. If you fail to provide required tax
information, any resulting penalties or interest will be borne by you.

Travelers Insurance

Piper Jaffray provides you with traveler’s insurance in accordance with the Company’s business
travel policy.

Time Off

You will be subject to Piper Jaffray’s Personal Time Management (“PTM”) program. While the PTM
program does not specifically allocate vacation or sick time, we expect that you will take a
reasonable
and appropriate amount of time off that is consistent with your individual needs, your personal
workflow and the demands of your position and our business environment.

Home Leave Trip

You and your family members will also be entitled to one home leave trip once every 12 months to
Minneapolis. Please note that the UK tax charge will arise if the trip is not to Minneapolis.
Class of travel will be business class. The actual expenses should be claimed via Piper Jaffray
expense reimbursement policy.

Emergency Leave and Evacuation Notice

As an initial precautionary measure, Piper Jaffray strongly urges you and your accompanying family
members to register with your home country embassy in the host location upon arrival.
Additionally, if you are in an area that is troubled by, or may develop a reasonable potential for
war or insurrection, you should have periodic communications with Piper Jaffray so that specific
plans may be developed for handling an evacuation of yourself and your accompanying family members
should the need arise.

Expenses Related to Evacuation

Should emergency evacuation become necessary because of civil disturbance, war, natural disasters,
or other adverse living conditions suddenly imposed on you and your accompanying family members,

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Piper Jaffray will reimburse transportation and living expenses for you and dependents that are at
an evacuation point. You should have one or more international credit cards and/or letters of
credit so that you have the ability to provide essential emergency funds.

Emergency Family Death Leave

Should the need arise; Piper Jaffray will reimburse transportation expenses for you and dependents.
Class of travel will be in accordance with Piper Jaffray travel policy.

Banking Arrangements

To enable you to continue participating in the home-country benefit plans and to meet ongoing
obligations in your home country, your payroll will remain in the U.S., and your funds will be
deposited into a designated home-country bank account on a per pay-period basis.

Piper Jaffray will pay for up to a maximum of 2 wire transfers per month.

End of Assignment

Resignation/Termination

While on assignment, should you resign to seek other employment while assigned overseas, and you
elect to remain at the foreign location to work and live, any and all Piper Jaffray obligations to
you will cease on the date of termination.

While on assignment, if you resign to accept an offer of U.S.-based employment already made to you
by another company, the firm’s obligation to you will cease on the date of termination, and no
further assistance will be provided, and Piper Jaffray will seek reimbursement of all actual
pre-move and relocation expenses incurred and or paid to you or paid on your behalf.

Should your employment be terminated by Piper Jaffray while assigned overseas, and you elect to
remain at the foreign location to work and live, any and all Piper Jaffray obligations to you will
cease on the date of termination.

And finally, if you voluntarily resign and you elect to return to the U.S. without new employment,
or should your employment be terminated by Piper Jaffray for any reason while assigned oversees and
you elect to return to the U.S., the cost of returning you and your family to a single U.S.
location, including the cost of airfare in accordance with travel policy and shipment of household
and personal effects will be borne by Piper Jaffray provided the move is commenced within 30 days
of the termination date. The shipment of household goods is limited to those items originally
shipped to the country of assignment plus limited reasonable and appropriate acquisitions.

Repatriation

At the conclusion of your assignment, you will be entitled to provisions outlined in the
Pre-departure and Relocation section in reverse as follows:

	n	 	Shipment of household goods and personal
effects;

	 
	n	 	Relocation allowance;

	 
	n	 	Travel for you and your accompanying
family members to Minneapolis;

	 
	n	 	Return to U.S.-based health and welfare
benefits, if still employed and benefits eligible;

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	n	 	Tax briefing and tax preparation
assistance related to your international assignment.

The following provisions will cease:

	n	 	Storage of household goods in the home country will cease once you and you accompanying family members
have moved into your permanent residence in Minneapolis, and

	 
	n	 	All premiums, differentials, allowances
and subsidies will cease upon repatriation.

Retirement

Piper Jaffray will repatriate you to Minneapolis, Minnesota, prior to any termination due to
retirement.

Death on Assignment

If you die while on assignment, Piper Jaffray reimburses your next of kin or the estate for all
reasonable expenses incurred in excess of those that would normally occur had death been in the
home country. Reimbursement expenses include the return of the deceased for interment in the home
country and moving expenses back to the home country for those prescribed as family members.

Documentation and Recordkeeping Responsibility

The responsibility for maintaining appropriate records and payments is a joint responsibility of
both you and Piper Jaffray, including our supporting vendors such as KPMG, Weichert, etc. While
every effort will be made by Piper Jaffray and its partners to ensure accurate work is completed on
time, you should be actively involved in the review process. If at any time you find errors in, or
have any
questions concerning your pay, allowances, or taxes, please bring them to our attention for
correction or clarification.

Reimbursements

Except as otherwise specifically provided in this letter, any reimbursements for which you are
eligible must be handled promptly. Documentation of reimbursable expenses must be submitted to
Piper Jaffray within 45 days after such expenses are incurred. Piper Jaffray will pay reimbursable
amounts promptly thereafter and in any event not later than March 15 of the calendar year following
the year in which you incurred the reimbursable expense. With respect to any reimbursements and
the provision of in-kind benefits to you that are not current compensation for services performed
(such as tax preparation services), the amount of such reimbursements and in-kind benefit provided
during any calendar year shall not affect the expenses eligible for reimbursement or in-kind
benefits to be provided in any other calendar year, and the right to reimbursement of such expenses
or in-kind benefits may not be exchanged for cash
or any other benefit. Any reimbursements or in-kind benefits provided under this letter agreement
are intended to be payable in accordance with a reimbursement plan pursuant to Section 409A of the
Code.

Section 409A

As previously noted, this letter agreement is intended to comply with the provisions of Section
409A of the Internal Revenue Code, as amended, and the rules and regulations promulgated
thereunder, and shall be interpreted and administered consistent therewith. You acknowledge and
agree that you were advised by the Company to consult with an attorney of your own choosing
concerning the provisions of this assignment letter including all such provisions that are or may
be subject to Section 409A of the Code.

Notice Period

You agree to abide by Piper Jaffray’s notice period policy. This policy requires that you provide
Piper Jaffray with 60 days written notice of your intent to resign from your employment. During
this notice

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period you will continue to be an employee of Piper Jaffray and may be required to
continue to perform certain job responsibilities and/or transition your responsibilities. During
this notice period you will continue to receive your base salary and to participate in all benefit
plans corresponding to an employee at your level. Piper Jaffray may require that you not come to
work during the notice period. In no event, however, may you perform services for any other
employer during the notice period.

At Will Employment

Your employment continues to be at will. Nothing in this letter modifies the at-will employment
relationship between you and Piper Jaffray. You and Piper Jaffray retain the right to terminate
your employment, without notice at any time, for any reason.

Code of Conduct

While conducting business on behalf of Piper Jaffray while on assignment, and while living as a
representative of both Piper Jaffray and the United States while on assignment, you will be
expected to act as an appropriate ambassador of the firm and your country. As such, you must
adhere to all firm
policies and procedures, including but not limited to: Guiding Principles, Code of Ethics, Employee
Handbook, etc., as well as all applicable securities and other laws and regulations. It is very
likely that U.S. industry regulations will remain in full force. Even if U.S. regulatory rules do
not apply, it is the expectation that you will comply with the intent and spirit of these
regulations at all times.

Failure to comply with or perform up to an acceptable level with the professional and reasonable
standards of behavior can lead to disciplinary actions, including repatriation, and up to and
including the termination of employment.

This international assignment provides a meaningful opportunity for you to develop further as a
leader in our firm and is an integral part of executing against our growth strategy. I look
forward to discussing any additional questions you may have.

Regards,

/s/ Thomas P. Schnettler

Thomas P. Schnettler

President and Chief Operating Officer

In acknowledgment of receipt and concurrence of the terms and conditions included within this
letter, please sign below and return.

	 	 	 	 	 	 	 	 	 
	Signed

	 	/s/ Robert W. Peterson
 

Robert W. Peterson
	 	 	 	1/13/2010
 

Date
	 	 

			
	Cc:	 	HR

Payroll

Accounting

KPMG

12exv10w12

Exhibit 10.12

EMPLOYMENT AND SEVERANCE AGREEMENT

AS AMENDED AND RESTATED

     This Employment and Severance Agreement (the “Agreement”), originally effective as of the 21st
day of July, 2004, is amended and restated effective this 1st day of March, 2010, by and between
AGCO CORPORATION, a Delaware corporation (the “Company”), and Martin Richenhagen (the
“Executive”). This Agreement amends, restates and supersedes the Employment and Severance
Agreement between the Company and the Executive effective as of the 21st day of July,
2004 and any subsequent amendments or restatements thereto.

WITNESSETH:

     In consideration of the mutual covenants and agreements hereinafter set forth, the Company and
the Executive do hereby agree as follows:

     1. EMPLOYMENT.

          (a) The Company hereby employs the Executive, and the Executive hereby agrees to serve the
Company, upon the terms and conditions set forth in this Agreement.

          (b) The employment term commenced on July 21, 2004 and shall continue in effect for an initial
three (3) year term. This Agreement shall automatically be extended for additional one (1) year
terms unless: (i) the Company notifies the Executive at least sixty (60) days prior to the
expiration of the current term that this Agreement shall not be renewed, or (ii) the Agreement is
terminated pursuant to the provisions of Section 5 or any other provision of this Agreement.

     2. POSITION AND DUTIES.

     The Executive shall serve as Chairman, President and Chief Executive Officer of the Company
and shall perform such duties and responsibilities as may from time to time be prescribed by the
Company’s board of directors (the “Board”), provided that such duties and responsibilities are
consistent with the Executive’s position. The Executive shall perform and discharge faithfully,
diligently and to the best of his ability such duties and responsibilities and shall devote all of
his working time and efforts to the business and affairs of the Company and its affiliates,
including, but not limited to, outside directorships. During the three (3) years following a Change
in Control (as defined herein), the Executive’s position (including offices, titles and reporting
requirements), duties, and responsibilities shall not be reduced, and the Executive shall not be
required to work at a location other than the location at which the Executive was based at the time
of the Change in Control.

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     3. COMPENSATION.

          (a) BASE SALARY. The Company shall pay to the Executive an annual base salary (“Base Salary”)
One Million Fifty Thousand Dollars ($1,050,000 USD), payable in equal semi-monthly installments
throughout the term of such employment subject to Section 5 hereof (except that the first and last
semi-monthly installments may be prorated, if necessary) and subject to applicable tax and payroll
deductions. The Company shall consider increases in the Executive’s Base Salary annually, and any
such increase in salary implemented by the Company shall become the Executive’s Base Salary for
purposes of this Agreement.

          (b) INCENTIVE COMPENSATION. Provided Executive has duly performed his obligations pursuant to
this Agreement, the Executive shall be entitled to participate in the Management Incentive Plan and
the Long-Term Incentive Plan that is implemented by the Company.

          (c) EXECUTIVE NONQUALIFIED PENSION PLAN. During the term of this Agreement, the Executive
shall be entitled to participate in the AGCO Corporation Executive Nonqualified Pension Plan
(“SERP”), and the SERP shall be amended to provide for the following:

	 	(1)	 	For the purpose of determining years of
credited service, the Executive shall be guaranteed the first five (5)
years of service. Benefits shall be vested and portable if the
Executive’s employment is terminated by the Company without Cause, by
the Executive for Good Reason or by the Company by not renewing this
Agreement, even if the Executive’s actual employment is less than five
(5) years.
	 
	 	(2)	 	In the event the Executive elects to terminate
employment with the Company for reasons other than Good Reason, the
benefits of the SERP shall not be portable.

          (d) OTHER BENEFITS. During the term of this Agreement, the Executive shall be entitled to
participate in the employee benefit plans and arrangements which are available to senior executive
officers of the Company, including, without limitation, group health and life insurance, pension
and savings, and the Senior Management Employment Policy.

          (e) FRINGE BENEFITS. The Company shall pay or reimburse the Executive promptly for all
reasonable and necessary expenses incurred by him in connection with his duties hereunder, upon
submission by the Executive to the Company of such written evidence of such expenses as the Company
may require. Throughout the term of this Agreement, the Company will provide the Executive with
the use of a vehicle for purposes within the scope of his employment and shall pay, or reimburse
Executive for, all expenses for fuel, maintenance and insurance in connection with such use of the
automobile. The Company shall make any such reimbursement or payments under this Section 3(e) no
later than the last day of the Executive’s

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taxable year next following the Executive’s taxable year in which the Executive incurs the expense.
The Company further agrees that the Executive shall be entitled to four (4) weeks of vacation in
any year of the term of employment hereunder, subject to the terms of the Company’s vacation
policy.

          (f) MODIFICATION OF BENEFITS. Without by implication limiting the foregoing, during the three
(3) years following a Change in Control, the Executive’s compensation, including Base Salary,
incentive compensation opportunity, SERP opportunity, other benefits and fringe benefits shall not
be reduced. Notwithstanding the foregoing, the Company shall be entitled to modify the group
health benefits provided such modifications are applicable to all similarly situated management
employees. To the extent that the Company is not able to continue life, group health or similar
benefits as a result of the terms of the applicable plans or insurance policies, the Company shall
pay the Executive the cost, no less frequently than monthly, that the Executive must incur to
obtain such benefits privately.

4. RESTRICTIVE COVENANTS

          (a) ACKNOWLEDGMENTS. The Executive acknowledges that as an Executive Officer of the Company
(i) he frequently will be exposed to certain “Trade Secrets” and “Confidential Information” of the
Company (as those terms are defined in Subsection 4(b)), (ii) his responsibilities on behalf of the
Company will extend to all geographical areas where the Company is doing business, and (iii) any
competitive activity on his part during the term of his employment and for a reasonable period
thereafter would necessarily involve his use of the Company’s Trade Secrets and Confidential
Information and, therefore, would unfairly threaten the Company’s legitimate business interests,
including its substantial investment in the proprietary aspects of its business and the goodwill
associated with its customer base. Moreover, the Executive acknowledges that, in the event of the
termination of his employment with the Company, he would have sufficient skills to find
alternative, commensurate work in his field of expertise that would not involve a violation of any
of the provisions of this Section 4. Therefore, the Executive acknowledges and agrees that it is
reasonable for the Company to require him to abide by the covenants set forth in this Section 4.
The parties acknowledge and agree that if the nature of the Executive’s responsibilities for or on
behalf of the Company and the geographical areas in which the Executive must fulfill them
materially change, the parties will execute appropriate amendments to the scope of the covenants in
this Section 4.

          (b) DEFINTIONS.

(i) “Business of Company” means designing, manufacturing, marketing, and
distributing agricultural equipment.

(ii) “Material Contact” as used in the non-solicitation provision below means
personal contact or the supervision of the efforts of those who have personal
contact with an existing or potential Customer or Vendor in an effort to further or
create a business relationship between the Company and such existing or potential
Customer or Vendor.

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(iii) “Confidential Information” means information about the Company, its
Executives, and Customers which is not generally known outside of the Company, which
the Executive learns of in connection with the Executive’s employment with the
Company, and which would be useful to competitors of the Company or potentially
harmful to the Company’s reputation. Confidential Information includes, but is not
limited to: (1) business and employment policies, marketing methods and the targets
of those methods, finances, business plans, promotional materials and price lists;
(2) the terms upon which the Company hires employees and provides services to its
Customers; (3) the nature, origin, composition and development of the Company’s
products and services; and (4) the manner in which the Company provides products and
services to its Customers.

(iv) “Trade Secrets” means Confidential Information which meets the additional
requirements of the Georgia Trade Secrets Act.

(v) “Territory” means those countries and areas as more particularly set forth on
Exhibit A attached hereto.

          (c) COVENANT OF CONFIDENTIALITY. During the term of this Agreement, the Executive agrees only
to use and disclose Confidential Information in connection with his duties hereunder and to
otherwise maintain the secrecy of the same. The Executive agrees that for a period of five years
following the cessation of his employment for any reason, he shall not directly or indirectly
divulge or make use of any Confidential Information or Trade Secrets of the Company without prior
written consent of the Company. The Executive further agrees that if he is questioned about
information subject to this Agreement by anyone not authorized to receive such information, he will
promptly notify the Chairman of the Board. This Agreement does not limit the remedies available
under common or statutory law, which may impose longer duties of non-disclosure. The Executive
will immediately notify the Chairman of the Board if he receives any subpoenas which could require
the disclosure of Confidential Information, so that the Company may take whatever actions it deems
necessary to protect its interests.

          (d) COVENANT OF NON-COMPETITION. The Executive agrees that while employed by the Company and
for a period of twenty-four (24) months following the cessation of his employment for any reason,
he will not compete with the Business of Company by performing services of the same or similar type
as those he performed for the Company as an employee, contractor, consultant, officer, director or
agent for any person or entity engaged in the Business of Company. Likewise, the Executive will not
perform activities of the type which in the ordinary course of business would involve the
utilization of Confidential Information or Trade Secrets protected from disclosure by Section 4 (c)
of this Agreement. This paragraph restricts competition only within the Territory.

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          (e) COVENANT OF NON-SOLICITATION. The Executive agrees that while employed by the Company and
for a period of twenty-four
(24) months following the
cessation of his employment for any reason, he will not directly or indirectly solicit or attempt
to solicit any business in competition with the Business of Company from any of the Customers with
whom the Executive had Material Contact within the last 18 months of his employment with the
Company. The Executive further agrees that for a period of twenty-four (24) months following the
cessation of his employment, he will not directly or indirectly solicit or attempt to solicit any
Vendors of the Company with whom he had Material Contact during the last 18 months of his
employment with the Company to provide services to any person or entity which competes with the
Business of Company.

          (f) COVENANT OF NON-RECRUITMENT. The Executive agrees that while employed by the Company and
for a period of twenty-four
(24) months following the cessation of his employment for any reason,
he will not directly or indirectly solicit or attempt to solicit any other employee of the Company
for the purpose of encouraging, enticing, or causing said employee to voluntarily terminate
employment with the Company.

          (g) COVENANT TO RETURN PROPERTY AND INFORMATION. The Executive agrees to return all of the
Company’s property within seven (7) days following the cessation of his employment for any reason.
Such property includes, but is not limited to, the original and any copy (regardless of the manner
in which it is recorded) of all information provided by the Company to the Executive, or which the
Executive has developed or collected in the scope of his employment with the Company, as well as
all Company-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices,
computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or
papers.

          (h) ASSIGNMENT OF WORK PRODUCT AND INVENTIONS. The Executive hereby assigns and grants to the
Company (and will upon request take any actions needed to formally assign and grant to the Company
and/or obtain patents, trademark registrations or copyrights belonging to the Company) the sole and
exclusive ownership of any and all inventions, information, reports, computer software or programs,
writings, technical information or work product collected or developed by the Executive, alone or
with others, during the term of the Executive’s employment. This duty applies whether or not the
forgoing inventions or information are made or prepared in the course of employment with the
Company, so long as such inventions or information relate to the Business of Company and have been
developed in whole or in part during the term of the Executive’s employment. The Executive agrees
to advise the Company in writing of each invention that Executive, alone or with others, makes or
conceives during the term of Executive’s employment. Inventions which the Executive developed
before the Executive came to work for the Company, if any, are as follows: None.

          (i) REMEDIES FOR VIOLATION OF RESTRICTIVE COVENANTS. The Executive acknowledges that the
Company would suffer irreparable harm if the Executive fails to comply with the foregoing, and that
the Company would be entitled to any appropriate relief, including money damages, injunctive and
other equitable relief and attorneys’ fees. The

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Executive agrees that the pendency of any claim
whatsoever against the Company shall not constitute a defense to the enforcement of this
Noncompetition Agreement by the Company.

          (j) SEVERABILITY. In the event that any one or more of the provisions of these restrictive
covenants shall be held to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
Moreover, if any one or more of the provisions contained in these restrictive covenants shall be
held to be excessively broad as to duration, activity or subject, the parties authorize the Court
in which such action is pending to modify said covenants and enforce them to the extent that the
Court deems reasonable.

     5. TERMINATION.

          (a) DEATH. This Agreement shall terminate upon the death of the Executive, provided, however,
that for purposes of the payment of Base Salary to the Executive, the death of the Executive shall
be deemed to have occurred ninety (90) days from the last day of the month in which the death of
the Executive shall have occurred.

          (b) DISABILITY. Executive’s employment and all obligations of the Company hereunder shall
terminate upon a finding that the Executive is disabled under the Company’s group long term
disability plan.

          (c) CAUSE. The Company may terminate the Executive’s employment hereunder for Cause by giving
written Notice of Termination to the Executive. For the purposes of this Agreement, the Company
shall have “Cause” to terminate the Executive’s employment hereunder upon: (i) the conviction of
Executive of, or the entry of a plea of guilty, first offender probation before judgment, or nolo
contendere by Executive to, any felony; (ii) fraud, misappropriation or embezzlement by Executive;
(iii) Executive’s willful failure or gross negligence in the performance of his assigned duties for
the Company, which failure or negligence continues for more than or was not remedied within thirty
(30) calendar days following Executive’s receipt of written notice of such willful failure or gross
negligence; (iv) Executive’s failure to follow reasonable and lawful directives of the Board or his
breach of his fiduciary duty to the Company, which failure is not remedied within thirty (30)
calendar days following Executive’s receipt of written notice of such failure; (v) any act or
omission of Executive that has a demonstrated and material adverse impact on the Company’s business
or reputation for honesty and fair dealing, other than an act or failure to act by Executive in
good faith and without reason to believe that such act or failure to act would adversely impact on
the Company’s business or reputation for honesty and fair dealing; or (vi) the breach by Executive
of any material term of this Agreement, which breach continues for more than or was not remedied
within thirty (30) calendar days following Executive’s receipt of written notice of such breach.

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          (d) WITHOUT CAUSE; GOOD REASON.

	 	(i)	 	The Company may terminate the Executive’s
employment hereunder without Cause, by giving written Notice of
Termination (as defined in Section 5(e)) to the Executive.
	 
	 	(ii)	 	The Executive may terminate his employment
hereunder, by giving written Notice of Termination to the Company. For
the purposes of this Agreement, the Executive shall have “Good Reason”
to terminate his employment hereunder upon (a) a substantial reduction
in the Executive’s aggregate Base Salary and annual incentive
compensation taken as a whole, excluding any reductions caused by the
performance of the Company or the Executive, including but not limited
to, the failure by the Executive to achieve performance targets
established from time to time by the Board and/or under the Management
Incentive Plan or Long Term Incentive Plan or from below budget
performance by the Company, or (b) the Company’s failure to make
payments of Base Pay and incentive compensation, but only upon notice
of such failure given by the Executive within ninety (90) days of the
initial existence of the failure and the subsequent failure of the
Company to cure the non-payment within thirty (30) days of such notice.

          (e) NOTICE OF TERMINATION. Any termination by the Company pursuant to the Subsections (b),
(c) or (d)(i) above or by the Executive pursuant to Subsection (d)(ii) above, shall be communicated
by written Notice of Termination from the party issuing such notice to the other party hereto. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the
specific termination provision of this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such termination. A date of
termination specified in the Notice of Termination shall not be dated earlier than ninety (90) days
from the date such Notice is delivered or mailed to the applicable party and not later than two (2)
years after the initial existence of the failure.

          (f) OBLIGATION TO PAY. Except upon termination for Cause, voluntary termination by the
Executive without Good Reason, or termination as a result of death or disability, and further
subject to Sections 6 and 16 below, the Company shall (i) pay the compensation specified in this
Subsection 5(f) to the Executive for the period specified in this Subsection 5(f), (ii) continue to
provide, no less frequently than monthly, life insurance benefits during the remainder of the
applicable period, including the Severance Period set forth in this Subsection 5(f), and (iii) if
and to the extent the Executive timely elects COBRA continuation coverage, pay the Executive on a
monthly basis the cost of COBRA premiums for a period of 18 months or such lesser period as the
Executive continues to have COBRA continuation coverage.

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     If the Executive’s employment shall be terminated by reason of death, the estate of the
Executive shall be paid all Base Salary and reimbursements otherwise payable to the Executive
through the end of the third month after the month in which the death of the Executive occurred,
plus all bonus or other incentive benefits accrued or accruable to the Executive through the end of
the month in which the death of the Executive occurred, on the same basis as if the Executive had
continued employment through such times, and the Company shall have no further obligations to the
Executive under this Agreement.

     If the Executive’s employment is terminated by reason of disability as determined under the
Company’s long term disability plan, the Executive or the person charged with legal responsibility
for the Executive’s estate shall be paid all Base Salary and reimbursements and payments otherwise
payable to the Executive, including the bonus and other benefits accrued or accruable to the
Executive, on the same basis as if the Executive had continued employment through the date of
disability, and the Company shall have no further obligations to the Executive under this
Agreement.

     If the Executive’s employment shall be terminated for Cause, the Company shall pay the
Executive his Base Salary through the date of termination specified in the Notice of Termination
and reimbursements otherwise payable to the Executive and the Company shall have no further
obligations to the Executive under this Agreement.

     If the Executive’s employment shall be terminated by the Company by not renewing the Agreement
following the initial term or any subsequent term, the Executive shall be paid all Base Salary and
reimbursements and payments otherwise payable to the Executive, including the bonus and other
benefits accrued or accruable to the Executive, through the date of termination specified in the
Notice of Termination, and the Company shall pay the Executive the sum of (x) two (2) times the
Base Salary (at the rate in effect on the date of such termination plus (y) a bonus in an amount
equal to the three (3) year average of the awards received by the participant during the prior two
(2) completed years and the current year’s trend (based upon results through the month most
recently complete prior to the termination, extrapolated for the complete year) multiplied by two
(2) times provided, however, that notwithstanding the foregoing, the Executive shall not be
entitled to any severance payments under clauses (x) or (y) of this sentence upon and after
reaching age 65. The Executive shall have no further right to receive any other compensation,
benefits or perquisites after the date of termination of employment except as determined under the
terms of this Agreement or any applicable employee benefit plans or programs of the Company or
under applicable law.

     If the Executive’s employment shall be terminated by the Company without Cause or by the
Executive for Good Reason, the Company shall (x) continue to pay the Executive the Base Salary (at
the rate in effect on the date of such termination) for a period of two (2) years from the date of
such termination (such two (2) year period being referred to hereinafter as the “Severance Period”)
at such intervals as the same would have been paid had the Executive remained in the active service
of the Company, plus (y) a bonus in an amount equal to the three (3) year average of the awards
received by the participant during the prior two (2) completed years and the current year’s trend
(based upon results through the month most recently complete prior to the

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termination, extrapolated for the complete year) multiplied by two (2) times; provided,
however, that notwithstanding the foregoing, the Executive shall not be entitled to any severance
payments under clauses (x) and (y) of this sentence upon and after reaching age 65 . The Executive
shall have no further right to receive any other compensation, benefits or perquisites after the
date of termination of employment except as determined under the terms of this Agreement or any
applicable employee benefit plans or programs of the Company or under applicable law.

     If within two (2) years following a Change in Control the Executive’s employment shall be
terminated by the Company without Cause or by the Executive for Good Reason (a “Change in Control
Termination”), the Company shall immediately pay, and in all events within thirty (30) days after
the date of termination, the Executive the sum of (x) three (3) times the Base Salary (at the rate
in effect on the date of such termination), (y) a pro rata portion of the bonus or other incentive
benefits to which the Executive would have been entitled for the year of termination had the
Executive remained employed for the entire year, plus (z) a bonus in an amount equal to the three
(3) year average of the awards received by the participant during the prior two (2) completed years
and the current year’s trend (based upon results through the month most recently complete prior to
the termination, extrapolated for the complete year) multiplied by three (3) times. Any payment
due to the Executive with respect to clause (y) and (z) that is calculated based upon the Company’s
Management Incentive Plan shall be reduced by any similar amounts received by the Executive under
such plan. Also, notwithstanding the foregoing, in the event of a Change in Control Termination,
the Company shall continue the Executive’s life and group health coverage for a period of three (3)
years, subject to the same payments by the Executive that the Executive was required to make prior
to termination. Notwithstanding the foregoing, the Company shall be entitled to modify the group
health benefits provided such modifications are applicable to all similarly situated management
employees. To the extent that the Company is not able to continue life or group health benefits as
a result of the terms of the applicable plans or insurance policies, the Company shall pay the
Executive the cost, no less frequently than monthly, that the Executive must incur to obtain such
benefits privately.

     For the purposes of this Agreement, the term “Change in Control” shall mean change in the
ownership of the Company, change in the effective control of the Company or change in ownership of
a substantial portion of the Company’s assets, as described in Section 280G of the Code, including
each of the following: (i) a change in the ownership of the Company occurs on the date that any one
person, or more than one person acting as a group, acquires ownership of stock of the Company that,
together with stock held by such person or group, possess more than fifty percent (50%) of the
total fair market value or total voting power of the stock of the Company (unless any one person,
or more than one person acting as a group, who is considered to own more than fifty percent (50%)
of the total fair market value or total voting power of the stock of the Company, acquires
additional stock); (ii) change in the effective control of the Company is presumed (which
presumption may be rebutted by the Compensation Committee of the Board) to occur on the date that
either: any one person, or more than one person acting as a group, acquires (or has acquired during
the twelve (12)-month period ending on the date of the most recent acquisition by such person or
persons) ownership of stock of the Company possessing thirty percent (30%) or more of the total
voting power of the stock of such Company;

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(iii) a majority of members of the Company’s Board is
replaced during any twelve (12)-month
period by directors whose appointment or election is not endorsed by a majority of the members
of the Company’s Board prior to the date of the appointment or election of such new directors; or
(iv) a change in the ownership of a substantial portion of the Company’s assets occurs on the date
that any one person, or more than one person acting as a group, acquires (or has acquired during
the twelve (12)-month period ending on the date of the most recent acquisition by such person or
persons) assets from the Company that have a total fair market value equal to forty percent (40%)
or more of the total fair market value of all of the assets of the Company immediately prior to
such acquisition or acquisitions unless the assets are transferred to: a stockholder of the Company
(immediately before the asset transfer) in exchange for or with respect to its stock; an entity,
fifty percent (50%) or more of the total value or voting power of which is owned, directly or
indirectly by the Company; a person, or more than one person acting as a group, that owns, directly
or indirectly, fifty percent (50%) or more of the total value or voting power of all of the
outstanding stock of the Company; or an entity, at least fifty percent (50%) of the total value or
voting power is owned, directly or indirectly, by a person, or more than one person acting as a
group, that owns directly or indirectly, fifty percent (50%) or more of the total value of voting
power of all of the outstanding stock of the Company.

          (g) TAXES. In the event it shall be determined that any payment or distribution by the
Company to or for the benefit of the Executive in the event of a Change in Control, whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, (a
“Change in Control Payment”) would be subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”) or any interest or penalties are incurred by
the Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall
be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after
payment by the Executive of all taxes (including any interest or penalties imposed with respect to
such taxes), including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Change in
Control Payments. The Company shall pay all such Gross-Up Payments before such excise taxes are
required to be remitted.

	 	6. 	CONDITIONS APPLICABLE TO SEVERANCE PERIOD; MITIGATION OF DAMAGES

          (a) If during the Severance Period, the Executive breaches his obligations under Section 4
above, the Company may, upon written notice to the Executive, terminate the Severance Period and
cease to make any further payments or provide any benefits described in Subsection 5(f).

          (b) Although the Executive shall not be required to mitigate the amount of any payment
provided for in Subsection 5(f) by seeking other employment, except in the case of

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a Change in
Control Termination, any such payments shall be reduced by any amounts which the
Executive receives or is entitled to receive from another employer with respect to the Severance
Period. The Executive shall promptly notify the Company in writing in the event that other
employment is obtained during the Severance Period.

     7. NOTICES. For the purpose of this Agreement, notices and all other communications to either
party hereunder provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered in person or mailed by certified first-class mail, postage prepaid,
addressed:

          in the case of the Company to:

AGCO Corporation

4205 River Green Parkway

Duluth, Georgia 30096

Attention: Debra Kuper

          in the case of the Executive to:

Martin Richenhagen

2778 Grey Moss Pass

Duluth, Georgia 30097

or to such other address as either party shall designate by giving written notice of such change to
the other party.

     8. ARBITRATION. Any claim, controversy, or dispute arising between the parties
with respect to this Agreement, to the maximum extent allowed by applicable law, shall be submitted
to and resolved by binding arbitration. The arbitration shall be conducted pursuant to the terms
of the Federal Arbitration Act and (except as otherwise specified herein) the Commercial
Arbitration Rules of the American Arbitration Association in effect at the time the arbitration is
commenced. The venue for the arbitration shall be the Atlanta, Georgia offices of the American
Arbitration Association. Either party may notify the other party at any time of the existence of
an arbitrable controversy by delivery in person or by certified mail of a Notice of Arbitrable
Controversy. Upon receipt of such a Notice, the parties shall attempt in good faith to resolve
their differences within fifteen (15) days after the receipt of such Notice. Notice to the Company
and the Executive shall be sent to the addresses specified in Section 7 above. If the dispute
cannot be resolved within the fifteen (15) day period, either party may file a written Demand for
Arbitration with the American Arbitration Association’s Atlanta, Georgia Regional Office, and shall
send a copy of the Demand for Arbitration to the other party. The arbitration shall be conducted
before a panel of three (3) arbitrators. The arbitrators shall be selected as follows: (a) The
party filing the Demand for Arbitration shall simultaneously specify his or its arbitrator, giving
the name, address and telephone number of said arbitrator; (b) The party receiving such notice
shall notify the party demanding the arbitration of his or its arbitrator, giving the name, address
and telephone number of the arbitrator within five (5) days of the

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receipt of such Demand for
Arbitration; (c) A neutral person shall be selected through the
American Arbitration Association’s arbitrator selection procedures to serve as the third
arbitrator. The arbitrator designated by any party need not be neutral. In the event that any
person fails or refuses timely to name his arbitrator within the time specified in this Section 8,
the American Arbitration Association shall (immediately upon notice from the other party) appoint
an arbitrator. The arbitrators thus constituted shall promptly meet, select a chairperson, fix the
time, date(s), and place of the hearing, and notify the parties. To the extent practical, the
arbitrators shall schedule the hearing to commence within sixty (60) days after the arbitrators
have been impaneled. A majority of the panel shall render an award within ten (10) days of the
completion of the hearing, which award may include an award of interest, legal fees and costs of
arbitration. The panel of arbitrators shall promptly transmit an executed copy of the award to the
respective parties. The award of the arbitrators shall be final, binding and conclusive upon the
parties hereto. Each party shall have the right to have the award enforced by any court of
competent jurisdiction.

	 	 	 
	Executive initials:                    

	 	Company initials:                    

     9. NO WAIVER. No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is approved by the Board and agreed to in a writing signed
by the Executive and such officer as may be specifically authorized by the Board. No waiver by
either party hereto at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a
waiver of any other provisions or conditions of this Agreement at the same or at any prior or
subsequent time.

     10. SUCCESSORS AND ASSIGNS. The rights and obligations of the Company under this Agreement
shall inure to the benefit of and be binding upon the successors and assigns of the Company and the
Executive’s rights under this Agreement shall inure to the benefit of and be binding upon his heirs
and executors. Neither this Agreement or any rights or obligations of the Executive herein shall
be transferable or assignable by the Executive.

     11. VALIDITY. The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provisions of this
Agreement, which shall remain in full force and effect. The parties intend for each of the
covenants contained in Section 4 to be severable from one another.

     12. SURVIVAL. The provisions of Section 4 hereof shall survive the termination of Executive’s
employment and shall be binding upon the Executive’s personal or legal representative, executors,
administrators, successors, heirs, distributees, devisees and legatees and the provisions of
Section 5 hereof relating to payments and termination of the Executive’s employment hereunder shall
survive such termination and shall be binding upon the Company.

     13. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same
instrument.

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     14. ENTIRE AGREEMENT. This Agreement constitutes the full agreement and understanding of the
parties hereto with respect to the subject matter hereof and all prior or contemporaneous
agreements or understandings are merged herein. The parties to this Agreement each acknowledge
that both of them and their respective agents and advisors were active in the negotiation and
drafting of the terms of this Agreement.

     15. GOVERNING LAW. The validity, construction and enforcement of this Agreement, and the
determination of the rights and duties of the parties hereto, shall be governed by the laws of the
State of Georgia.

     16. DEFERRED COMPENSATION PLAN OMNIBUS PROVISIONS. Notwithstanding any other provision of this
Agreement, it is intended that any payment or benefit which is provided pursuant to or in
connection with this Agreement which is considered to be deferred compensation subject to Section
409A of the Code shall be provided and paid in a manner, and at such time, including without
limitation payment and provision of benefits only in connection with a permissible payment event
contained in Section 409A (e.g., death or separation from service from the Company and its
affiliates as defined for purposes of Section 409A of the Code), and in such form, as complies with
the applicable requirements of Section 409A of the Code, to avoid the unfavorable tax consequences
provided therein for non-compliance. For purposes of this Agreement, all rights to payments and
benefits hereunder shall be treated as rights to receive a series of separate payments and benefits
to the fullest extent allowed by Section 409A of the Code. If Executive is a “specified employee”
(as defined in Section 409A of the Code) and any of the Company’s stock is publicly traded on an
established securities market or otherwise, then payment of any amount or provision of any benefit
under this Agreement which is considered to be deferred compensation subject to Section 409A of the
Code shall be deferred for six (6) months as required by Section 409A(a)(2)(B)(i) of the Code (the
“409A Deferral Period”). In the event such payments are otherwise due to be made in installments
or periodically during the 409A Deferral Period, the payments which would otherwise have been made
in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A
Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled. In the
event benefits are required to be deferred, any such benefit may be provided during the 409A
Deferral Period at Executive’s expense, with Executive having a right to reimbursement from the
Company once the 409A Deferral Period ends, and the balance of the benefits shall be provided as
otherwise scheduled. For purposes of this Agreement, any termination of employment will be read to
mean a “separation from service” within the meaning of Section 409A of the Code where it is
reasonably anticipated that no further services would be performed after such date or that the
level of bona fide services Executive would perform after that date (whether as an employee or
independent contractor) would permanently decrease to less than fifty percent (50%) of the average
level of bona fide services performed over the immediately preceding thirty-six (36)-month period.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

	 	 	 	 	 	 	 
	 	 	AGCO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	  /s/ Debra
E. Kuper 	 	 
	 

	 	 	 
	 

	 	 
	 

	 		Name: 	  Debra E. Kuper 	 	 
	 

	 	 	 	 

	 	 
	 

	 		Title:	  VP, General Counsel
& Secretary	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	  /s/ Martin
Richenhagen 	 	 
	 

	 	 	 
	 

	 	 
	 

	 		Name: 	  Martin
Richenhagen 	 	 
	 

	 	 	 	 

	 	 
	 

	 		Date:	  February 24, 2010	 	 
	 

	 	 	 	 

	 	 

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