Document:

Exhibit 10r to WINNEBAGO INDUSTRIES, INC. Form 10-Q dated 02-28-2004

Exhibit 10r  

OFFICERS LONG-TERM INCENTIVE PLAN  

FISCAL THREE-YEAR PERIOD  

2003, 2004 and 2005  

WINNEBAGO INDUSTRIES, INC.

OFFICERS LONG-TERM INCENTIVE PLAN

Fiscal Three-Year Period 2003, 2004 and 2005 

	1.  	  	Purpose.   The
purpose of the Winnebago Industries, Inc. Officers Long-Term Incentive Plan (the
“Plan”) is to promote the long-term growth and profitability of
Winnebago Industries, Inc. (the “Company”) by providing its officers
with an incentive to achieve long-term corporate profit objectives and to
attract and retain officers who will contribute to the achievement of growth and
profitability of the Company.  

	2.  	  	Administration.     

	  	a.  	  	 Human
Resources Committee.   The Plan shall be administered by a
Committee (the “Committee”) appointed by the Board of Directors.  

	  	b.  	  	Powers
and Duties..   The Committee shall have sole discretion and authority to make any and all
determinations necessary or advisable for administration of the Plan and may amend or
revoke any rule or regulation so established for the proper administration of the Plan.
All interpretations, decisions, or determinations made by the Committee pursuant to the
Plan shall be final and conclusive.  

	  	c.  	  	Annual
Approval.   The Committee must approve the Plan prior to
the beginning of each new fiscal three (3) year plan period. Each year a new
plan will be established for a new three-year period.  

	3. 	  	Participation Eligibility.     

	  	a.  	  	 Participants
must be an officer of the Company with responsibilities that can have a real impact on
the Corporation’s end results.  

	  	b.  	  	 The
Committee will approve all initial participation prior to the beginning of each new
program except as provided for in section c. below.  

	  	c.  	  	 The
President of Winnebago Industries, Inc. will make the determination on participation for
new participants, for partial awards due to retirement, disability or death. Unless
otherwise specified, participants must be employed as of the end of the three (3) year
fiscal period to be eligible for any incentive award.  

	4.  	  	Nature
of the Plan.   The long-term incentive award is based
upon financial performance of the Corporation as established by the three (3)
year Management Plan. The Plan is a three (3) year (fiscal) program that
provides for an opportunity for an incentive award based on the achievement of
long-term performance results as measured at the end of the three (3) year
fiscal period.
 

	  	The financial
performance measurements for this Plan will be earnings per share and return on
equity of the Company for this period. These financial performance measurements
will provide an appropriate balance between quality and quantity of earnings.
The Company’s formal three-year financial plan will be the basis on which
actual performance will be measured. The beginning of the fiscal year
stockholders’ equity at the first year of this period will be used as the
base figure for the calculation of return on equity. Any stock repurchase
program, adopted or completed outside of the three (3) year Management Plan will
not be considered in the earnings per share and the return on equity
calculations. 

	5.  	  	Method
of Payment.   The long-term incentive award will be paid
in cash. The amount of the participants’ long-term incentive award for the
three (3) year fiscal period shall be in direct proportion to the financial
performance expressed as a percentage (Financial Factor) against predetermined
award targets for each participant. The results for the fiscal three (3) year
period will be used in identifying the Financial Factor to be used for that plan
period when calculating the participants long-term incentive awards. 

	  	The long-term
incentive for the officers provides for an opportunity of 25% of the annualized
base salary (Target) to be awarded in cash at 100% achievement of the financial
long-term objectives of earnings per share and return on equity. The annualized
base salary figure used shall be the salary in place for each participant as of
January 2003. A unit target opportunity shall be established by dividing the
base salary target by the mean stock price as of the first business day of the
three (3) year fiscal period. The resultant unit opportunity (at 100% of Plan)
will be adjusted up or down as determined by first, the actual financial
performance expressed as a percentage (Financial Factor) and second, the
resulting units will be valued at the mean stock price at the end of the three
(3) year fiscal period. 

	  	A participant
must be employed by Winnebago Industries, Inc. at the end of the fiscal three
(3) year period to be eligible for any long-term incentive award except as
waived by the President of Winnebago Industries, Inc. for normal retirement and
disability. 

	6.  	  	Change
in Control.   In the event the Company undergoes a change
in control during the fiscal three (3) year plan period including, without
limitation, an acquisition or merger involving the Corporation (“Change in
Control”), the Committee shall, prior to the effective date of the Change
in Control (the “Effective Date”), make a good faith estimate with
respect to the achievement of the financial performance through the end of the
Plan three (3) year period. In making such estimate, the Committee may compare
the achievement of the financial performance against the forecast through the
Plan three (3) year period and may consider such other factors as it deems
appropriate. The Committee shall exclude from any such estimate any and all
costs and expenses arising out of or in connection with the Change in Control.
Based on such estimate, the Committee shall make a full three (3) year Plan
award within 15 days after the Effective date to all participants.  

	  	“Change in
Control” for the purposes of the Officers Long-Term Incentive Plan shall
mean the time when (i) any Person becomes an Acquiring Person, or (ii)
individuals who shall qualify as Continuing Directors of the Company shall have
ceased for any reason to constitute at least a majority of the Board of
Directors of the Company, provided however, that in the case of either clause
(i) or (ii) a Change of Control shall not be deemed to have occurred if the
event shall have been approved prior to the occurrence thereof by a majority of
the Continuing Directors who shall then be members of such Board of Directors,
and in the case of clause (i) a Change of Control shall not be deemed to have
occurred upon the acquisition of stock of the Company by a pension,
profit-sharing, stock bonus, employee stock ownership plan or other retirement
plan intended to be qualified under Section 401(a) of the Internal Revenue Code
of 1986, as amended, established by the Company or any subsidiary of the
Company. (In addition, stock held by such a plan shall not be treated as
outstanding in determining ownership percentages for purposes of this
definition.) 

For the purpose of the definition “Change of Control:" 

	  	(a)  	  	“Continuing
Director” means (i) any member of the Board of Directors of the Company,
while such person is a member of the Board, who is not an Affiliate or Associate
of any Acquiring Person or of any such Acquiring Person’s Affiliate or
Associate and was a member of the Board prior to the time when such Acquiring
Person shall have become an Acquiring Person, and (ii) any successor of a
Continuing Director, while such successor is a member of the Board, who is not
an Acquiring Person or any Affiliate or Associate of any Acquiring Person or a
representative or nominee of an Acquiring Person or of any affiliate or

	  	associate of
such Acquiring Person and is recommended or elected to succeed the Continuing
Director by a majority of the Continuing Directors. 

	  	(b)  	  	“Acquiring
Person” means any Person or any individual or group of Affiliates or
Associates of such Person who acquires beneficial ownership, directly or
indirectly, of 20% or more of the outstanding stock of the Company if such
acquisition occurs in whole or in part, except that the term “Acquiring
Person” shall not include a Hanson Family Member or an Affiliate or
Associate of a Hanson Family Member. 

	  	(c)  	  	“Affiliate” means
a Person that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the person
specified. 

	  	(d)  	  	“Associate” means
(1) any corporate, partnership, limited liability company, entity or
organization (other than the Company or a majority-owned subsidiary of the
Company) of which such a Person is an officer, director, member, or partner or
is, directly or indirectly the beneficial owner of ten percent (10%) or more of
the class of equity securities, (2) any trust or fund in which such person has a
substantial beneficial interest or as to which such person serves as trustee or
in a similar fiduciary capacity, (3) any relative or spouse of such person, or
any relative of such spouse, or (4) any investment company for which such person
or any Affiliate of such person serves as investment advisor. 

	  	(e)  	  	“Hanson
Family Member” means John K. Hanson and Luise V. Hanson (and the executors
or administrators of their estates), their lineal descendants (and the executors
or administrators of their estates), the spouses of their lineal descendants
(and the executors or administrators of their estates) and the John K. and Luise
V. Hanson Foundation. 

	  	(f)  	  	“Company” means
Winnebago Industries, Inc., an Iowa corporation.  

	  	(g)  	  	“Person” means
an individual, corporation, limited liability company, partnership, association,
joint stock company, trust, unincorporated organization or government or
political subdivision thereof. 

	7.  	  	Governing
Law.   Except to the extent preempted by federal law, the
consideration and operation of the Plan shall be governed by the laws of the
State of Iowa.  

	8.  	  	Employment
Rights.   Nothing in this Plan shall confer upon any
employee the right to continue in the employ of the Company, or affect the right
of the Company to terminate an employee’s employment at any time, with or
without cause.  

Approved by: 

	/s/   Bruce D. Hertzke	 	February 17, 2004	 
	
		
	
	Chairman of the Board, CEO and President	 	Dated	 
	 
	/s/   Frederick M. Zimmerman	 	February 16, 2004	 
	
		
	
	Human Resources Committee Chairman	 	DatedExhibit 10(b)

                       AMENDMENT TO RETROCESSION AGREEMENT

This AMENDMENT, dated as of December 22, 2003 (this "Amendment"), to the
Retrocession Agreement dated March 11, 1987, as amended (the "Retrocession
Agreement"), is entered into by and between Motors Mechanical Reinsurance
Company, Limited (the "Company") and Motors Insurance Corporation ("MIC").

NOW, THEREFORE, the parties hereby agree as follows:

SECTION 1. Amendment. Article VII of the Retrocession Agreement is hereby
amended and restated in its entirety by deleting all of Article VII and
replacing it with the following language:

                                  "ARTICLE VII
                            (Credit for Reinsurance)

If the Retrocessionaire is unauthorized or unaccredited as a reinsurer in any
state where the Company is domiciled or licensed, thereby preventing the Company
from obtaining full statutory financial statement credit for reinsurance
provided pursuant to this Agreement, the Retrocessionaire shall establish
letters of credit, trust accounts, or a combination thereof at the
Retrocessionaire's option, to the extent necessary to permit the Company to
obtain full credit for such reinsurance. The Retrocessionaire shall take any
additional steps necessary to permit the Company to obtain full credit for
reinsurance, to the extent credit is not otherwise available under applicable
law.

                                Letters of Credit

In the event the Retrocessionaire establishes letter(s) of credit, the following
provisions shall apply:

The Company shall forward to the Retrocessionaire a statement of the
Retrocessionaire's Minimum Funding Requirement (the "Minimum Funding
Requirement") within thirty (30) days after the close of each calendar quarter.
The Minimum Funding Requirement shall be calculated as follows: the sum of (i)
seventy-five percent (75%) of unearned premium required to be maintained by the
Company in respect of the Policies for state statutory accounting purposes
("Unearned Premium Reserve"), plus (ii) unpaid loss reserves including reserves
for losses incurred but not reported otherwise required to be maintained by the
Company in respect of the Policies for state statutory accounting purposes, plus
(iii) any additional liabilities due and payable to the Company hereunder, less
(iv) the Ceding Commission Credit, and less (v) any liabilities due and payable
to the Retrocessionaire hereunder. The Ceding Commission Credit shall be equal
to the sum of (i) eighteen and seventy-five hundredths percent (18.75%) of
Unearned Premium Reserve attributable to Service Agreements issued prior to
October 1, 2001, plus (ii) fifteen percent (15%) of Unearned Premium Reserve
attributable to Service Agreements issued on or after October 1, 2001.

Upon receipt of this statement, Retrocessionaire shall promptly apply for and
provide the Company with clean, irrevocable, and unconditional letter(s) of
credit ("Letter of Credit"), in the amount specified in the statement submitted,
issued by a bank that is a qualified United States financial institution as
defined under Michigan law and a qualified bank as defined under New York law,
which has terms acceptable to the Commissioner of Financial and Insurance
Services of the State of Michigan, the Superintendent of Insurance of the State
of New York, any additional applicable Insurance Commissioners, and the Company.

The Retrocessionaire and the Company agree the Letter of Credit provided by
Retrocessionaire pursuant to the provisions of this Agreement may be drawn upon
at any time, notwithstanding any other provisions in this Agreement and be
utilized by the Company or any successor by operation of law of the Company
including, without limitation, any liquidator, rehabilitator, receiver or
conservator of the Company for the following purposes:

      A.    To reimburse the Company for Retrocessionaire's share of Premiums
            returned to the Owners of the Policies on account of cancellations
            of such Policies;

<PAGE>

                                                                   Exhibit 10(b)
                                                                     (Continued)

      B.    To reimburse the Company for the Retrocessionaire's share of Losses
            Paid by the Company in respect of the Policies;

      C.    To fund an account with the Company in an amount at least equal to
            the Minimum Funding Requirement; and

      D.    To pay any other amounts the Company claims are due under this
            Agreement.

The provisions set forth above shall be applied without diminution because of
insolvency on the part of the Company or the Retrocessionaire.

In the event the Company draws upon the Letter of Credit for the purposes set
forth in paragraphs A, B, or C in excess of the amounts required to meet the
Retrocessionaire's obligations to the Company, or in excess of the amounts
subsequently determined to be due under paragraph D, the Company will return
such excess to the Retrocessionaire. the Company will credit interest at a rate
not in excess of the prime rate of interest, on the amounts held pursuant to
paragraph C.

The issuing bank shall have no responsibility whatsoever in connection with the
propriety of withdrawals made by the Company or the disposition of funds
withdrawn, except to assure that withdrawals are made only upon the order of
properly authorized representatives of the Company. the Company shall incur no
obligations to the bank in acting upon the credit, other than as appears in the
express terms thereof.

                                  Trust Account

In the event the Retrocessionaire establishes a trust fund, the following
provisions shall apply:

The Company shall forward to the Retrocessionaire the Minimum Funding
Requirement. Upon receipt of this statement, the Retrocessionaire shall enter
into a trust agreement in the form attached as Exhibit A (the "Trust Agreement")
and establish a trust account (the "Trust Account") for the benefit of the
Company with respect to the Retroceded Business with a bank that is a qualified
United States financial institution under Michigan law and a member of the
Federal Reserve System (the "Trustee") and in a form acceptable to the
Commissioner of Financial and Insurance Services of the State of Michigan, the
New York Superintendent of Insurance, any additional applicable Insurance
Commissioners, and the Company.

The Retrocessionaire agrees to deposit, and maintain in the Trust Account,
assets to be held in trust by the Trustee for the benefit of the Company as
security for the payment of the Retrocessionaire's obligations to the Company
under this Agreement.

The assets deposited in the trust account shall be valued according to their
current fair market value and shall consist only of cash (United States legal
tender), certificates of deposit issued by a United States bank and payable in
United States legal tender, and investments of the types permitted by chapter 9
of Act No. 218 of the Public Acts of 1956, as amended, being ss.ss. 500.901 to
947 of the Michigan Compiled Laws, and investments of the types specified in
paragraphs (1), (2), (3), (8) and (10) of subsection (a) of section 1404 of the
New York Insurance Law, provided that such investments are issued by an
institution that is not the parent, subsidiary, or affiliate of either the
grantor or the beneficiary.

The Retrocessionaire, before depositing assets with the Trustee, shall execute
assignments or endorsements in blank, or transfer legal title to the Trustee of
all shares, obligations, or any other assets requiring assignments, so that the
Company, or the Trustee upon direction of the Company, may, if necessary,
negotiate such assets without consent or signature from the Retrocessionaire or
any other entity.

The Company shall undertake to use and apply amounts withdrawn from the Trust
Account, without diminution because of the insolvency of the Company or the
Retrocessionaire, for any of the following purposes:

      A.    To reimburse the Company for Retrocessionaire's share of Premiums
            returned to the Owners of the Policies on account of cancellations
            of such Policies;

<PAGE>

                                                                   Exhibit 10(b)
                                                                     (Continued)

      B.    To reimburse the Company for the Retrocessionaire's share of Losses
            Paid by the Company in respect of the Policies;

      C.    To fund an account with the Company in an amount at least equal to
            the Minimum Funding Requirement; and

      D.    To pay any other amounts the Company claims are due under this
            Agreement.

In the event the Company withdraws from the Trust Account for the purposes set
forth in paragraphs A, B, or C in excess of the amounts required to meet the
Retrocessionaire's obligations to the Company, or in excess of the amounts
subsequently determined to be due under paragraph D, the Company will return
such excess to the Retrocessionaire. the Company will credit interest at a rate
not in excess of the prime rate of interest, on the amounts held pursuant to
paragraph C.

The Retrocessionaire shall have the right to seek the Company's approval to
withdraw all or any part of the assets from the Trust Account and transfer such
assets to the Retrocessionaire, provided that:

            (i)   the Retrocessionaire shall, at the time of withdrawal, replace
                  the withdrawn assets with other assets of a type permitted
                  hereunder having a market value equal to the market value of
                  the assets withdrawn, so as to maintain the Trust Account in
                  the required amount, or
            (ii)  after such withdrawal and transfer, the market value of the
                  Trust Account is no less than 102% of the required amount.

In the event that the Retocessionaire seeks the Company's approval hereunder,
the Company shall not unreasonably or arbitrarily withhold its approval."

SECTION 2: Miscellaneous. (a) Continuing Effect. Except as expressly amended
hereby, the Retrocession Agreement shall remain in full force and effect in
accordance with its terms.

      (b) Governing Law. This Amendment shall be governed by and construed and
enforced in accordance with the laws of the State of Michigan.

      (c) Counterparts. This Amendment may be executed by the parties hereto in
separate counterparts, each of which shall be an original, and all of which when
taken together shall be deemed to constitute one instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their duly authorized officers as of the date first above written.

                              MOTORS MECHANICAL REINSURANCE COMPANY, LIMITED

                              By: /s/ Ronald W. Jones
                                  --------------------------------
                              Name: Ronald W. Jones
                              Title: Vice President, Finance

                              MOTORS INSURANCE CORPORATION

                              By: /s/ John J. Dunn Jr.
                                  ---------------------------------
                              Name: John J. Dunn Jr.
                              Title:  Vice President and Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]