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                                                                Exhibit 10.6
                            GARDNER DENVER, INC.
                             PHANTOM STOCK PLAN
                            FOR OUTSIDE DIRECTORS
                 (AS AMENDED MAY 4, 1998 AND MARCH 7, 2000,
                  WITH AN EFFECTIVE DATE OF APRIL 1, 2000)

                   1. PURPOSE. Gardner Denver, Inc. (the "Company") hereby
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establishes this Phantom Stock Plan for Outside Directors (the "Plan") in
order to promote the interests of the Company and its stockholders by having
a portion of the total compensation payable to its outside directors be
deferred in the form of "phantom stock units," thereby increasing each
outside director's proprietary interest in the Company and further aligning
their interests with the interests of stockholders generally.

                   2. EFFECTIVE DATE. The effective date of this Plan is
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August 6, 1996.

                   3. PHANTOM SHARE UNITS.
                      -------------------

                   (a) In addition to the cash compensation otherwise
payable to each outside director of the Company, the Company shall establish
and maintain a Phantom Stock Account ("Account") for and in the name of each
outside director. Subject to the provisions of Section 10 of this Plan, on
the first day of each month, the Company shall credit the number of phantom
stock units ("Units") specified in Section 3(b) below to the Account of each
person who is an outside director of the Company on said date.

                   (b) The number of Units credited on the first day of each
month to the Account of an outside director shall be equal to (i) the sum of
$583.33 plus one-twelfth of the amount of the annual director's fee that the
director has elected to defer under this Plan, divided by (ii) the average
closing price of a share of the Company's common stock (individually, a
"Share" and collectively, "Shares") for those days on which Shares were
traded during the previous month, as reported on the composite tape of the
New York Stock Exchange or such other primary market or stock exchange on
which Shares may be traded in the future.

                   (c) The election provided in Section 3(b) above shall be
made annually by a director on or before the December 1 preceding the year
of service as a director to which the election is applicable, provided that
newly-elected directors may make such election within 15 days after their
election to the board of directors.

                   (d) Notwithstanding anything to the contrary in this
Section 3, persons who are outside directors on the effective date of this
Plan may initially make the election provided in Section 3(b) above not
later than the effective date of the Plan, and the effective date of this
Plan shall be deemed to be the first day of a month for purposes of
crediting Units to director Accounts.

                   4. DIVIDEND EQUIVALENTS. As of each dividend record date
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declared with respect to the Shares, the Company shall credit the Account of
each outside director with an additional number of Units equal to:

                   (a)   the product of (i) the dividend per Share that is
                         payable with respect to such dividend record date,
                         multiplied by (ii) the number of Units credited to
                         the

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                         director's Account as of such dividend record date;

                                 divided by
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                   (b)   the closing price of a Share on the dividend record
                         date (or if Shares were not traded on that date, on
                         the next preceding date on which Shares were
                         traded), as reported on the composite tape of the
                         New York Stock Exchange or such other primary
                         market or stock exchange on which Shares may be
                         traded in the future.

                   5. DISTRIBUTION OF ACCOUNT VALUE.
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                   (a) Each outside director (or in the event of the death
of an outside director, the director's beneficiary), shall be entitled to
receive the value of the director's Account in the manner provided in the
following paragraphs (b), (c) and (d) of this Section 5.

                   (b) Unless otherwise elected by an outside director in
accordance with the provisions of Section 5(c) below, the cash value of a
director's Account shall be distributed to the director or beneficiary, as
the case may be, on the first day of the month following the date upon which
the director ceases to be a director of the Company for any reason.

                   (c) At any time prior to the time an outside director
ceases to be a director of the Company, the director may irrevocably elect
to have all amounts to which the director will be entitled under this Plan
distributed in twelve or fewer equal monthly installments commencing on the
first day of the month following the date on which the director ceases to be
a director of the Company for any reason or on a date certain in the
twelve-month period immediately following the date on which the director
ceases to be a director of the Company for any reason. In the event of such
an election, no interest will be paid on the amounts deferred.

                   (d) For purposes of this Section 5, the cash value of a
director's Account shall be calculated by multiplying (i) the number of
Units in the Account by (ii) the average closing price of a Share during the
thirty (30) trading days immediately preceding (but not including) the date
on which the director ceased to be a director of the Company, as reported on
the composite tape of the New York Stock Exchange or such other primary
market or stock exchange on which Shares may be traded in the future.

                   6. BENEFICIARY DESIGNATION.
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                   (a) Each outside director may, from time to time, by
writing filed with the Company, designate any legal or natural person or
persons (who may be designated contingently or successively) to whom the
cash value of the director's Account is to be distributed if the director
dies prior to having received all of the amounts to which the director is
entitled under Section 5 above. A beneficiary designation will be effective
only if the signed form is filed with the Company while the director is
alive and will cancel all beneficiary designation forms previously filed.

                   (b) To the extent a director fails to designate a
beneficiary or beneficiaries as provided in this Section 6, or if all
designated beneficiaries die before the director or before the distribution
of the entire cash value of the director's Account, the remaining cash value
of the Account shall be distributed to the estate of the director as soon as
practicable after the director's death.

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                   7. FINANCIAL HARDSHIP DISTRIBUTION. The Company may
                      -------------------------------
 accelerate the distribution of a director's Account for reasons of severe
 financial hardship. For purposes of this Plan, severe financial hardship
 shall be deemed to exist in the event the Company determines that a
 director requires a distribution to meet immediate and significant
 financial needs resulting from a sudden or unexpected illness or accident
 of the director or a member of the director's family, loss of the
 director's property due to casualty, or other similar extraordinary and
 unforeseeable circumstances arising as a result of events beyond the
 control of the director. A distribution based upon financial hardship shall
 not exceed the amount required to meet the immediate financial need created
 by the hardship.

                   8. TRANSFERABILITY. The interests of any director or
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beneficiary under this Plan are not subject to the claims of the director's
creditors and may not otherwise be voluntarily or involuntarily assigned,
alienated or encumbered.

                   9. RIGHTS ASSOCIATED WITH UNITS. A director's Account
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shall be a memorandum account on the books of the Company and the Units
credited to a director's Account shall be used solely as a device for the
determination of the cash value of such Account to be distributed in
accordance with this Plan. Outside directors (and their beneficiaries) shall
have no rights as shareholders with respect to Units. A director's rights
under this Plan are solely those of an unsecured creditor of the Company and
the Company shall not be obligated to hold any cash, property or Shares in
trust or as a segregated fund. Participation in this Plan shall not give any
outside director the right to continue to serve as a member of the board of
directors or any rights or interests other than as provided in this Plan.

                   10. CHANGES IN SHARES.
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                   (a) In the event of any change in the number of
outstanding Shares by reason of any stock dividend (including a stock split
in the form of a stock dividend), recapitalization, merger, consolidation,
exchange of shares or other similar corporate transaction in respect of
Shares, the number of Units to be credited in accordance with Section 3
above, the number of Units held in each director's Account, and the amounts
to be distributed in accordance with this Plan shall be appropriately
adjusted to take into account any such event.

                   (b) In the event of a distribution by the Company of
stock of a subsidiary to the Company's stockholders (or similar event), the
Company shall make an equivalent cash payment to each outside director
participating in this Plan, taking into account the relative value of such
distribution on a per Share basis and the number of Units in a director's
Account. All determinations of the Company under this paragraph (b) shall be
conclusive.

                   11. CHANGE OF CONTROL.
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                   (a) In the event of a change of control of the Company,
the cash value of a director's Account shall be distributed on the first day
of the month following such change of control. For purposes of this
paragraph, the value of a director's Account shall be determined in a manner
consistent with Section 5(d) above, utilizing the thirty (30) trading days
immediately preceding (but not including) the date of the change of control.

                   (b) For purposes of this Plan, "change of control" shall
have the same meaning as in the Company's Long-Term Incentive Plan, as may
be amended from time to time.

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                   12. COMPANY SUCCESSORS. This Plan shall be binding upon
                        -------------------
any assignee or successor in interest to the Company whether by merger,
consolidation or sale of all or substantially all of the Company's assets.

                   13. ADMINISTRATION. This Plan shall be, to the maximum
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extent possible, self-effectuating. This Plan shall be construed,
interpreted and, to the extent required, administered by the board of
directors or a committee appointed by the board of directors to act on its
behalf under this Plan. Notwithstanding the foregoing, no director shall
participate in any decision relating solely to that director's benefits.

                   14. AMENDMENT AND TERMINATION. The board of directors of
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the Company may, from time to time, amend or terminate this Plan; provided,
however, that no such amendment or termination shall adversely affect the
rights of any director without the director's consent with respect to Units
credited to the director's Account prior to such amendment or termination.

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                                                                  Exhibit 10.7
                            GARDNER DENVER, INC.
                     EXECUTIVE STOCK REPURCHASE PROGRAM

On November 2, 1998, the Management Development and Compensation Committee
of the Board of Directors approved a Stock Repurchase Program for the
Company's executive staff. The purpose of this program is to provide a means
for executives to sell Gardner Denver common stock, with a goal of obtaining
sufficient funds to meet alternative minimum tax obligations which arise
from the exercise of incentive stock options. The repurchase of these shares
from the executives will also mitigate any potential disruption to an
orderly trading market, which could result if the trades were effected
through securities brokers, due to the Company's relatively small average
trading volume.

In order for the Company to engage in open market repurchases of its common
stock, all material information must be thoroughly disseminated to the
public. However, a sale from an executive officer to the Company is
considered a transaction between two insiders. Therefore, the risk of
financial loss to an outside party, if material non-public information has
not been disseminated, is eliminated. Accordingly, an officer is able to
sell stock to the Company during standard blackout periods, but must refrain
from open market transactions during this time. Standard blackout periods
occur from the end of a quarter until three days after the public release of
financial results. The tentative earnings release dates for 1999 are
February 3, April 21, July 21 and October 20. Other blackout periods occur
when material information, such as a pending acquisition, is not publicly
disseminated. To avoid the appearance of the officers "taking advantage" of
the Company, repurchases will not be permitted during a blackout period if
the nondisclosed information could be perceived as unfavorable news by the
public. Repurchases will also not be available on days designated as Company
holidays, even though such days may still be valid trading days.

In order to participate in the repurchase program, an executive must notify
the Vice President, Corporate Secretary, or in her absence the Vice
President, Finance and CFO, of the intention to sell shares. This
notification should be provided on the attached form and be accompanied by a
letter from Arthur Andersen, or some other tax professional, stating that
the purpose of the sale is primarily to fulfill alternative minimum tax
obligations and for tax planning purposes. The executive must deliver the
stock certificate(s) to the Vice President, Corporate Secretary, or her
designated alternate, on the date of the sale. These certificates must
represent at least the total number of shares to be sold. They should be
signed in the same name as appears on the face of the certificate, with the
signature guaranteed by a member of the Medallion Guaranty Program.
Notarization is not acceptable. "Gardner Denver, Inc." should be inserted in
the "assignee" blank on the back of the certificate. If the number of shares
represented by the certificate(s) exceeds the number of shares to be sold,
the Company's transfer agent, the First Chicago Trust Company of New York,
will issue a new certificate reflecting the remaining shares. The new
certificate will be dated as of the sale date. The seller is responsible for
maintaining accurate records which trace the origin and cost basis for new
certificate. Under special circumstances, the Company will accept the tender
of stock electronically (i.e. via DWAC transaction) from the seller's
broker. However, additional documentation and processing time will be
required for this type of transaction, so the seller should plan
accordingly.

The sales price under this program will be the average of the high and low
sales prices of the Company's common stock on the composite tape of the New
York Stock Exchange on the date of the repurchase. A check will be issued by
the Company within three business days of the sale.

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The determination to sell shares under this program is final and must be
submitted either on the day of the sale or no later than prior to the
initiation of trading the following day. If the following day is a holiday
for trading purposes but not for the business of the Company, the seller may
choose the holiday as his or her sale date, using the average high and low
trading value of the previous trading date. However, once trading begins, a
seller will no longer be able to refer to the previous day's average trading
price as the basis for a sale.

All of the executives of the Company are insiders, as defined by the
Securities and Exchange Commission (the "SEC"), and therefore are obligated
to satisfy the reporting requirements of Section 16 of the Securities
Exchange Act. An insider is required to report the sale of securities back
to the Company on a Form 5, which must be filed with the SEC within 45 days
of the calendar year-end. The Vice President, Corporate Secretary will
prepare the necessary form for this reporting obligation, for either the
seller's signature or for signature under a previously supplied power of
attorney. The seller is reminded that his or her purchase of additional
Gardner Denver common stock in an open market transaction is prohibited by
the Securities and Exchange Commission for six months following the date of
a sale. However, upon the completion of one sale transaction, the seller may
continue to sell the Company's stock, as long as blackout periods do not
apply. Acquiring stock through the exercise of stock options or through
contributions of stock by the Company to the seller's 401(k) account is not
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considered a "purchase" by the SEC. Furthermore, the sale of stock to the
Company is not considered an open market sale transaction by the SEC.
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Proceeds from the sale of Gardner Denver common stock will be reported to
the Internal Revenue Service as a sale of capital stock. The seller will be
provided a Form 1099-B by the Company, summarizing the sale transactions for
a tax year. Squire, Sanders & Dempsey, corporate counsel to the Company, has
advised that sales under this program are not subject to reporting
requirements under Rule 144 of the Securities Act of 1933.

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