Document:

AMENDMENT TO THE GEHL
COMPANY  
RETIREMENT INCOME PLAN
“B” 
December 15, 2006 

Section 2.01(p) of Plan B is amended
by the addition of the following at the end thereof: 

	 	
Effective
January 1, 2007, the Executive Officers of the Company as of such date (i.e., William D.
Gehl, Malcolm F. Moore, Thomas M. Rettler, Michael J. Mulcahy, Kenneth H. Feucht, Daniel
M. Keyes, Daniel L. Miller and James J. Monnat) shall cease to be eligible to be
“Employees” and shall be treated for all purposes under the Plan pursuant to the
rules of Section 3.06(c) for a Participant who transfers to a non-Employee status. 

*     *     *AMENDMENT TO THE GEHL
SAVINGS PLAN 
December 15, 2006 

The Savings Plan is amended in the
following respects effective January 1, 2006 except as otherwise indicated:  

	 	        1.              The
first sentence of Section 1.01(g) is amended to read as follows:  

“Compensation”means the
earnings paid to a Participant for services as an Employee on or after his entry date in
Section 2.01(a), equal to the sum of the amount reportable in Box 1 of Form W-2, plus any
Deposits hereunder and salary reduction pursuant to Code Section 125, 132(f) or 401(k),
less any bonuses, profit sharing payments, reimbursements or other expense allowances,
fringe benefits (cash or noncash), moving expenses, deferred compensation, and welfare
benefits.  

	 	        2.              The
first sentence of Section 3.08(d) is amended to read as follows:  

If the average deferral percentage
of Highly Compensated Participants for any Plan Year exceeds the applicable deferral
percentage limitation for such year, each affected Highly Compensated Participant shall
receive a distribution of the amount of their excess Deposits, together with income on
such Deposits for the Plan Year in which the contributions were made and any gap period
income pursuant to applicable regulations.  

	 	        3.              The
parenthetical phrase in Section 3.08(e) “(but not including any gap           period
income)” is amended to read “(including any gap period           income)".  

	 	        4.              The
first sentence of Section 3.09(d) is amended to read as follows:  

If the average contribution
percentage of Highly Compensated Participants for any Plan Year exceeds the applicable
contribution percentage limitation for such year, each affected Highly Compensated
Participant shall receive a distribution of the amount of their excess matching
contributions, together with income on such contributions for the Plan Year in which the
contributions were made and any gap period income pursuant to applicable regulations.  

	 	        5.              The
last sentence of Section 6.01(b) is amended to read as follows:  

A Participant whose entire vested
interest in his account has been distributed shall be deemed cashed out of the Plan.  

	 	        6.              Effective
January 1, 2007, the second sentence of Section 6.06(a) is amended to           read as
follows:  

For purposes of this Section, the
term substantial hardship shall mean:  

	 	(i) 	expenses
for (or necessary to obtain) medical care that would be deductible
                    under Code Section 213(d) without regard to whether the expenses
exceed                     71⁄2% of adjusted gross income;  

	 	(ii) 	costs
directly related to the purchase (excluding mortgage payments) of a
                    principal residence for the Participant;  

	 	(iii) 	payment
of tuition, related educational fees, and room and board expenses for
                    the next twelve (12) months of post-secondary education for the
Participant or                     the Participant’s spouse, children or dependents
(as defined in Code                     Section 152 without regard to Code Section
152(b)(1), (b)(2) and (d)(1)(B));  

	 	(iv) 	payments
necessary to prevent the eviction of the Participant from his principal
                    residence or foreclosure on the mortgage of the Participant’s
principal                     residence;  

	 	(v) 	payments
for burial or funeral expenses for the Participant’s deceased
                    parent, spouse, children or dependents (as defined in Code Section
152 without                     regard to Code Section 152(d)(1)(B)); or  

	 	(vi) 	expenses
for the repair of damage to the Participant’s principal residence
                    that would qualify for the casualty deduction under Code Section 165
(without                     regard to whether the loss exceeds 10% of adjusted gross
income).  

	 	        7.    
                    Effective January 1, 2007, the third paragraph of Section 6.06(a) is
amended to                     read as follows:  

	 	        Any
Participant who makes a withdrawal under this Section shall have his Deposits and any
other elective contributions or employee contributions under this Plan or any other plan
maintained by the Company (both qualified and nonqualified) automatically suspended for a
period of six (6) months following such withdrawal. 

*     *     * 

2Exhibit 10.12 to Tennant Company Form 10-K for fiscal year ended December 31, 2006

Exhibit 10.12  

 

TENNANT’S

LONG-TERM

INCENTIVE

PLAN

(LTIP)

 

2007

	
            Tennant Company
 	
            Long Term Incentive Plan    
 

 

 

	
            OBJECTIVE
  	
            To maximize Economic Profit Improvement.

 
 
	
            LTIP DESIGN
  	
            It is essential for the management team to focus on common goals and objectives and to work towards the organization’s long-term success. One vehicle to help facilitate this is a Long-Term Incentive Plan (LTIP). Tennant’s LTIP has been designed to reward:

 

1.   Achievement of long-term financial objectives 

2.   Improvement in Tennant stock price

 
 
	
            ECONOMIC 
PROFIT (EP)

 
 	
            For the 2007 LTIP, Tennant will be utilizing Economic Profit (EP) improvement as the primary driver of our business. As a result, objectives are tied directly to EP improvement over the three-year performance period (2007-2009).

 

The primary elements of EP are:

 

•     Sales

•     Operating Expenses

–     Cost of Sales

–     Selling and Administration Expenses

•     Tax Rates

•     Capital Charge on net assets, including:

–     Inventories

–     Receivables

–     Property, Plant and Equipment

 

Payout under the EP
element is a function of how well the Company performs vs. target performance (i.e., actual three-year aggregate EP improvement
vs. target EP improvement as shown in Attachment A).

 
 

	
             

LTIP Payout 
Formula
  	
             

LTIP Payout Formula = 

 

Base Salary X LTIP Award % = Target Award

 

The target award is then converted into a target stock award (70% of the target award) and a target cash award
(30% of the target award). Actual Awards will be based actual EP change over the three-year performance period vs. target change over the three-year performance period with a maximum payout of 2X the target cash and shares. For performance and corresponding award percentages, please refer to attachment A.
 

2007 Tennant LTIP

	
            Tennant Company
 	
            Long Term Incentive Plan    
 

 

 

	
 
  	
Example  — 

 

An LTIP participant has a base salary of $125,000 and a target award of 15% of base. The stock price at the beginning of the measurement period is $40 and at the end of the measurement period is $50.

 

Target Incentive:  $125,000 X 15% = $18,750

 

Stock Target Award:  ($18,750 X 70%)/$40 = 328 shares

Cash Target Award:  ($18,750 X 30%) = $5,625

 

The Company achieves a 110% factor based on achievement in excess of targeted EP and the schedule outlined in Attachment A.

110% X 328 Shares = 361 shares (rounded to nearest share)

110% X $5,625 = $6,187

 

Total Award Value (paid in shares and cash): 

 

Share Award:  361 shares X $50 share price: $18,047

Cash Award:   $6,187

Total Award Value:  $24,234

 
 
	
LTIP Administration
 	
The Management Committee will determine the final amounts of LTIP Awards to participants, except with respect to Senior Management Team (SMT) members whose awards will be determined by the Board Compensation Committee. The Board Compensation Committee may exercise negative discretion to reduce the amount of, or eliminate, an LTIP Award that otherwise would be payable. Such determinations, except in the case of the LTIP Award for the Chief Executive Officer, shall be made after considering the recommendations of the Chief Executive Officer. 

 

The Management Committee may impose additional performance measures or modify performance measures applicable to participants (other than SMT members, whose performance measures may be modified by the Board Compensation Committee), except in the case where the action would result in the loss of an otherwise available exemption under Section 162(m), if the Committee determines that the performance measures have become unsuitable as a result of certain events.
 

 

 

 

2007 Tennant LTIP

	
            Tennant Company
 	
            Long Term Incentive Plan    
 

 

 

	
            DEFINITIONS
 
	
            BASE SALARY
 	
            The total base salary of an individual on March 31st of the first year of the LTI plan performance period. 
 
	
             
 	
             
 
	
            OBJECTIVES
 	
            Company goals will be developed, approved, and communicated prior to the first quarter of the Plan Performance Period.
 
	
             
 	
             
 
	
            MANAGEMENT  COMMITTEE
 	
            The Management Committee will consist of Tennant’s CEO, VP of HR/Administration and CFO. This Committee has the responsibility for administration of the Plan, including without limitation adding or modifying performance measures applicable to participants and resolving any issues around Plan interpretation, provided that the Board Compensation Committee must approve any such actions that affect the members of the Company’s Senior Management Team. 
 
	
             
 	
             
 
	
            PERFORMANCE PERIOD
 	
            The Performance Period is the three-year period over which the Actual and Goal EP Growth are measured.
 
	  
	
            MATERIAL CHANGES
 	
            In those instances where there are material changes in the business (e.g., mergers, acquisitions, divestitures), the Management Committee reserves the right, without limitation, to make corresponding adjustments to any or all aspects of the Plan (i.e., funding schedules, individual objectives, etc.). The Board Executive Compensation Committee must approve changes that affect the Senior Management Team.
 
	
             
 	
             
 
	
            AWARD DISTRIBUTION
 	
            Normally, payouts will occur near mid-March, following the end of the performance period.

	  
	
            TERMINATION
 	
            Should a participant’s employment terminate prior to the end of the Plan Performance Period for any reason other than retirement, death, or disability (as defined by the 1999 Stock Plan), the participant will not be entitled to an incentive payment.

 

If a participant’s employment with the Company terminates by reason of retirement, death, or disability, a prorated payment will be made within 90 days following the end of the performance period, based upon the time the participant served during the performance period. The final award will be based on the performance over the
entire performance period.
 
	 
	
            CHANGE IN JOB WITHIN
 THE COMPANY
 	
            A participant who changes jobs but is not eligible for this Plan in the future retains the right to payment under this Plan for any performance periods that have already begun.
 

 

2007 Tennant LTIP

	
            Tennant Company
 	
            Long Term Incentive Plan    
 

 

 

	
            DEFINITIONS (Cont’d)
 
	
             
 	
             
 
	
            EMPLOYMENT

AT WILL
 	
            Participation in the Incentive Plan does not constitute a guarantee of continued employment to individuals in the Plan. Employment with the Company remains “at will,” which means that all aspects of the job, including employment by the Company, may be changed or terminated by the Company at any time with or without cause. Likewise, the individual may terminate employment with Tennant.
 
	
             
 	
             
 
	
            PLAN INTERPRETATION

AND

IMPLEMENTATION
 	
            The Company reserves the right, without limitation, to interpret and implement this Plan in accordance with the 1999 Stock Incentive Plan. Interpretations of this Plan are generally made by the Management Committee.
 

 

 

 

 

	
            Participant Signature
 	
              
	
              
	
              

	
             
 	
             
 	
             
 	
            Date
 
	 
	
            Manager Signature 
 	
              
	
              
	
              

	
             
 	
             
 	
             
 	
            Date
 
	 
	
            SLT Member Signature 
 	
              
	
              
	
              

	
             
 	
             
 	
             
 	
            Date
 

2007 Tennant LTIP

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